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I am of the opinion that optimizing images for a device is not worth it, since it renders the ebook sub-optimal for future devices, for only a small gain. Of course for image centric publications like comics, calibre does optimize the images.
profile is used for making device specific changes to the EPUB without which the EPUB would not work on the device. The primary reason for this is that Adobe went and designed their own HTML rendering engine, which has a lot of quirks, so devices using ADE have quirky support for EPUB.
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