Image processing is but one of the many very clever design features in our eyes. Mores the pity that many who are focused on the blind spot cannot understand eyes to be Intelligently Designed.
The fovea of the eye captures the small section of our visual field where we are looking directly. It is richly replete with colour sensing cones. It requires more light but has very high precision. When we look directly at someone or something in good light, that is where we get the detail from.
In contrast to a TV screen and a video camera, which have the same detail all over the screen, the eyes economically concentrate on our point of direct interest, and scan the remaining areas with a lower resolution. This constitutes one type of hardware compression.
Further along the visual processing pathways there are many additional levels of hardware and software compression.