You kind of do :) There is no way to embed streams in HTML directly. You need a separate function showing a single image by id (e.g. /show_image/id) and build a list with links to that function in the list_image view.
{{for img in images:}} <tr> {{= TD(img.title) }} {{= TD(IMG(_src=URL("show_image", args=img.id), _alt=img.title)) }} </tr> {{pass}}