As far as I know the only image processing K2 does is when you upload a "cover picture" for an item and it is resized in the various size (Generic, Large, etc...). But this is a little work and it's done just once, so I don't think moving to css resize will be of any help, if possible it could make things worse, because the server has to send bigger pictures. If you check the links of your pictures, they all take you to the cache folder of K2 where resized pictures are stored statically without additional dynamic job (yes, calling it "cache" is not a great idea... anyway...).
Maybe with the help of the hosting provider you can identify the php files that are using a lot of cpu and have a better knowledge about the problem. I see your website is quite fast, so maybe it's not a front-end issue.
Just a user's opinion :P