Downfall? I dont think so. Did you ever heared about DDS?

• JPEGs are small on the HD, but they have to be converted into directX texture surfaces when you use them as textures or skins. The downfall of JPEGs are visible: you will use fairly the same amount of videomemory as bitmaps, but JPEGs contain artifacts. So the benefit of low HD space (do you have a 10MB HD?) take no benefit in videomemory!!
• JPEGs cannot inherit alpha masks
• DDS files are compressed files like JPEG (they contains as well compression artifacts), but they are compressed with directX texture compression, so that the consumpted space on the HD is equivalent to the consumpted video memory. DDS files are available under A6 and they run very fine.

So I guess "downfall" is the wrong word in here.
I dont miss it!

Cheers
Christian