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Griff, I agree with you somewhat that the jump from 3.x to 4.0 seems too high for the new functionality being offered right now. However, keep in mind that we are talking of the beginning of 4.x, and that iSilo/X has a good track record for making regular updates and bringing out new features.
To answer your question, in my eyes the new lossy compression on images is very helpful - and the faster your handheld, the less noticeable this extra bit of compression becomes.
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