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I believe PNG is lossless. JPG is lossy and will do what you state. Smaller files in PNG would come from software working harder to compress since no info is tossed away.
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PNG just uses better algorithms, but you can not compress without discarding
some kind of information. Anyway I meant that PNG-24 is more like jpg in that it uses true color and is fit best for complex images like photos. PNG-24 won't let you compress it further when loss of information becomes visible to the human eye.
But then, my "expertise" on this comes from the eye of a designer, not a programmer
