Of course, from a technical standpoint, Deep Zoom is just commoditizing what Google Maps made possible years ago in pure script so there wasn’t really a reason why this couldn’t be done, except smoother transitions and zooming but that’s pretty tenuous.
Embedding the viewer into a page is YouTube-easy: give the deep zoom url and it will build the code for you to embed.
MSDN on Deep Zoom:
Embedding the viewer:
UPDATE: Kapil created a Python-based tile-cutting application that is compatible with both deep-zoom clients, to work around the Windows-only nature of the creation tools:
UPDATE: Also check out this TED talk to get a glimpse of the true potential of these technologies (all that you're seeing in this talk is publicly available by the way):