A mode of a compression algorithm != part of a file format?
To make that assertion is like saying since IEEE created the IEEE 802.11 wireless protocol, your old wireless B router is capable of running a wireless N network. :rolleyes:
JPEG compression as used within the JFIF file format, will result in some blurring whether perceivable by the human eye or not. The fact you cannot tell shows the compression algorithm works well. The fact its a lossy compression on the other hand is unaffected by that.
http://en.wikipedia.org/wiki/JPEG