There is a work-around to enable zooming, by using Zoomify.
I use a button in the Caption to link to a page showing a Zoomified version of the picture (Zoomify breaks large files into small pieces: as you zoom in, you only download the parts you are looking at). For example: http://www.brianwatsonphoto.co.uk/Pano/index.html#1.
For this <image>, my config.xml file looks like this:
<image imageURL="images/tyneglow8938.jpg"
thumbURL="thumbs/tyneglow8938.jpg"
linkURL="z/tyneglow8938.html"
smallImageURL="images/small/tyneglow8938.jpg">
<title><![CDATA[The Glow on the Tyne]]></title>
<caption><![CDATA[7,004 x 2,774 pixels <form><button type="submit" formaction='z/tyneglow8938.html' formmethod='post'>Zoom…</button></form>]]></caption>
</image>
This lets me display high resolution versions of my quite detailed panoramas.
The only drawback is that the button won't stay on the same line as the Caption: it appears on the line below.
Hope this helps,
Brian