What is SVG and why is so important in a electronic die cutting machine?

This post is a general chit chat. So if you consider yourself  as a member of an orthodox G cult - ha ha you can skip reading. :) 
For others grab a hot drink (well it's morning herefor me and Can one really drink anything cold in the morning? Yes? Oh my gosh does such a world even exist?) 
Ok to come back to the topic - At first I asked myself the same question - well maybe it was  worded more like - What the heck is SVG???
So what's my solution to anything  - GOOGLE for it. Between wiki and google almost any question within reason can be answered as far as I am concerned (well at least in my little world). 
So here's what SVG stands for Scalable Vector Graphic.
Ok so what and why is that so important to our electronic die cutting machines. 
Heres' my two bits and how I interpret this
What does SVG do? SVG uses the basic x and y coordinates  to plot the image. remember how we used to plot a graph when we were young. We would be given a set of coordinates and we could immediately plot a point on the graph and all we need to do is connect all the dots and there you have it a graph or an image. So at any moment in that image all you need is the coordinates and you know exactly where you are. 
This is the whole key. For a cutting machine needs to know where to cut at each and every point of the image (even fonts are nothing but images).
So desn't JPG or GIF or BMP do that. Nopes - they all use pixels to plot. Pixels are like boxes. You fill up the screen with boxes. And think about it. How many boxes can you fill in a space. So you set a constraint. That's what all that resolution numbers means for eg 1024 x 640 etc . the number of boxes across the screen column wise and row wise. So now here comes the problem. You say you are going to draw say 10 x 10 pixels as you just wanted to fill up a small area say 1 inch x 1 inch. .Now  someone wants to fill up a bigger area say 2 inch x 2 inch. But all I have is 10 x 10 pixels. So what happens? I have no data for the extra pixels So when I have to fill up the extra pixels. And as the boxes get filled up - it results in a jagged image. 
Just zoom in on any JPG or GIF or BMP images - you will see boxes and the image climbs up or down like a step whereas the SVG image is always just a line. And just a line is what a die cutting machine needs.  We want a nice dies cut not some jaggedy ones do we? 
BTW this is why all the latest camera cell phones which use this technology are all  so in craze. With photo files as SVG  you can take a photo anywhere and blow it up and it will not be blurred but as crisp as you saw in your phone.