Hi, Kovid, thanks for the explanation!
So, is there an output profile (such as, perhaps, "Default Output Profile")

that does -no- image resizing, and just leaves the images as-is?
I'm thinking particularly if one is making a single .mobi for different size output devices, there's no "right" size, so not re-encoding the images at all would be the simplest (as well as fastest) approach.
If it's feasible, that is: What image file formats does a .mobi handle natively, without re-encoding? Or does it require re-encoding no matter what?
Thanks!