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Non-standard
This feature is non-standard and is not on a standards track. Do not use it on production sites facing the Web: it will not work for every user. There may also be large incompatibilities between implementations and the behavior may change in the future.
Summary
The HTML <image> element was an experimental element designed to display pictures. It never was implemented and the standard <img> element must be used.
Do not use this! In order to display images, use the standard <img> element.
Note that up to Firefox 22, though not supported, an <image> element was associated with an HTMLSpanElement. It was then fixed and is now associated with a HTMLElement as requested by the specification.