If IE would support Canvas or SVG, that would be true today. The map
data exists in vector format and it is converted to images for
browsers (IE).

Actually CloudMade serves Openstreetmap tiles in SVG format.
http://developers.cloudmade.com/projects/show/vector-tiles

Company called Cartotype has made demos with those.
http://www.cartotype.com/

Here is a video
http://blog.cloudmade.com/2009/06/15/fly-through-berlin/
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