This is wrong. Witness data is not stored in the UTXO set. Witness data is revealed when spending a UTXO, removing it from the UTXO set. Witness data is only in blocks and can be pruned.
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oh yeah I didn't mean to imply the witness data itself is stored in the utxo set, but utxos are created
This OP_RETURN change has nothing to do with JPEGs. It is 4x cheaper to store JPEGs in the witness data, and the witness data is *not* stored in the UTXO set.
This change is for protocols that need some small amount of data but bigger than 40 bytes to be in an output before being spent. Witness data is not suitable for this because the tx has to be spent to reveal the data.