Intrinsic Dimensions

Here:

http://www.w3.org/TR/REC-CSS2/conform.html

It says:

###############
Replaced element
An element for which the CSS formatter knows only the intrinsic dimensions.
In HTML, IMG, INPUT, TEXTAREA, SELECT, and OBJECT elements can be examples
of replaced elements. For example, the content of the IMG element is often
replaced by the image that the "src" attribute designates. CSS does not
define how the intrinsic dimensions are found.

Intrinsic dimensions
The width and height as defined by the element itself, not imposed by the
surroundings. In CSS2 it is assumed that all replaced elements -- and only
replaced elements -- come with intrinsic dimensions.
#################

Is it saying that for example with an image [<img>] inhereted dimensions
would be overidden by the dimensions set inside the tag itself? Does this
change the way an image is scaled by the old html img width and height
attributes?

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