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It looks like the spec now wants img.complete to be true in <http://www.w3c-test.org/html/tests/approved/canvas/2d.drawImage.incomplete.html> <http://www.whatwg.org/html/#dom-img-complete> Philip, could you check?
http://dev.w3.org/html5/spec/embedded-content-1.html#dom-img-complete
http://dvcs.w3.org/hg/html/rev/5bfdbef872e3 should fix the tests for not-fully-decodable images, and removes the explicit checks of img.complete since that's now unrelated to canvas behaviour.