Right, using stenography to encode some parity bits into an image so that lost information can be reconstructed seems like an obvious approach - all sorts of approaches you could use, akin to FEC. Haven't looked at your site yet, will be interested to see what you've built :)

Edit: I checked it out, nice, I like the lower res stenography approach, can work very nicely with good upscaling filters - gave it a star :)

steganography — stenography is courtroom transcription