I had the same issue... you don't need to look for an alternative to .jpg/.png files, you need to look into asynchronous image loading and image caching.
For the asynchronous image loading, look at this example:
URLCache project in the iOS Reference Library
Also, there's a nice tutorial on image caching, here in the forums:
Image Caching Tutorial
No worries - your app will perform significantly better once you've implemented a combination of these techniques. Good luck!