Does this progressive image compression exists?
I believe that the Stationary Wavelet Transform (SWT) meets your requirements:
https://en.wikipedia.org/wiki/Stationary_wavelet_transform

1) Any given level of coefficients could be used to reconstruct the original image by running normal reconstruction but assuming zeros for the other levels.

2) Each level of coefficients stores data about a different range of spatial frequencies in the original image, and thus they can be recombined arbitrarily.

3) Unless you quantize when or after you perform the transform, the SWT is lossless.

4) I haven't done any processing time evaluation, but optimized libraries are available: https://www.mathworks.com/help/wavelet/ug/discrete-stationary-wavelet-transform-swt.html

In general though, unless you require translation invariance, you would benefit from the downsampling in the more common Discrete Wavelet Transform (DWT). The downsampling results in smaller images which requires less space to store and time to process. No information is lost by this downsampling as the frequency filters in the DWT filter out and then store (in the higher resolution levels) the frequencies that then get lost in the downsampling. The lower frequencies simply need fewer samples to be accurately reconstructed (https://en.wikipedia.org/wiki/Nyquist_frequency).