According to the x264 developers (can't find the reference anymore, sorry), wavelet based lossy compression is good for optimizing for PSNR, not for perceptual

According to the x264 developers (can't find the reference anymore, sorry), wavelet based lossy compression is good for optimizing for PSNR, not for perceptual image/audio quality, being prone to loss of detail. x264 beats Dirac and modern image compression formats like HEIF (based on HEVC) easily beat JPEG2000. Modern codecs usually use transforms derived from the classic DCT and DST.