The only problem with converting the textures to JPG is that you'll lose quality. The DDS texture files are mostly a mixture of DXT 1, DXT 3, DXT 5 which are already compressed, although there's a couple that are uncompressed, such as 59's walls. The transparency and specular maps are stored in the alpha channels of the diffuse and normal map textures respectively, so reducing them to a single image will mean that data is lost. You can, however, separate them and save them as separate files quite simply in Photoshop or Gimp.
Ultimately it's up to whoever uses the stuff - I'm not against it. I'm just saying there'll be more artefacts and a loss of quality with the textures if they're further compressed. It might not be noticeable at a distance though. Still, I'm pretty sure Blender can view DDS files by default and there's plugins for Photoshop and Gimp as well as a plugin to allow you to view the thumbnails in thumbnail view in Explorer.
In other news, I managed to make anaho's elevator scene into something I can use in Fallout 3
Since I haven't started texturing / UV mapping it yet I can't show it in game. Use your imagination!
I got it down from +400,000 polys to roughly 3,500. There's still some minor stuff missing - like on the console - but good enough to show off! The only thing remaining from the original model is the floor (albeit edited) which I'll probably also replace. Still a lot of work to do, but it was definitely better than starting from scratch. Thanks anaho; I hope something of mine is of use to you