What the component buys you
<Image> wraps <img> with: format conversion (WebP/AVIF), responsive sizes, lazy loading, blur-up placeholders, and reserved space (no Cumulative Layout Shift). The optimizer runs at the edge on Vercel; sharp takes over self-hosted.
Local vs remote images
Local images (import) get their dimensions auto-detected. Remote images need explicit width and height so the layout reserves space; the host has to be in images.remotePatterns.
v16: preload, not priority
The above-the-fold hint was renamed from priority to preload. Old code still works but logs a deprecation warning.
Fill mode for unknown sizes
fill stretches to the parent container; pair with object-fit via Tailwind/CSS and a sizes hint for responsive serving.