I can see there being advantages and disadvantages to both really. If using lossless formats such as PNG (or flac for music) cause slowdowns or other issues then lossy formats are usually 'good enough' (especially if they are vastly more performant.) Most people when actually playing a game arent going to notice some slight degredation.... But i have to admit the archivist in me prefers lossless formats.
Let's be clear about that, i'm a quality addict, archiving my cds as flac, ripping my UHDBR as a simple mkv repack (no transcoding)... but outside my home server, i'm using loosy virtualy lossless formats to gain from 30% to 200% space or compatibility with some hardware, lossless is pointless if you can't use it smoothly (i've started studying lossy and lossless numeric formats 25 years ago, before the mpeg1 became a real standard so i've seen many formats and their limits - mpeg2 rgb full range for medical archive at time witch was unusable real time where yuy2 was great...)
DDS BC7 is 100% visualy lossless (not to compare with older dds codec), i've done countless tests before convert my mods to dds.
Even why my 4k projector (>2m base) i cant tell witch one is png and witch one is dds.
It's like wav vs mpc@320kbps (musepack), you'll never be able to spot any audible difference even with a very good hifi amp.
Or uncomp avi vs 4k h265 hight bitrate, you can't tell witch one in compressed even with a good projector.
Png is good for archiving sources files (so you can edit/mod the source loselessly, even if you edit/record 1000 times) , for live game engine it's pointless.
Thats not what i meany. More like what aalis cache does. If it sees a png it converts it to dds and saves in a cache. Would be slow the first loads but after that would be fast
No need for a cache as dds is loaded first, only need to convert dds in the same folder as png.
But as dds bc7 is realy powerfull, it's also realy slow to convert specialy on older GC (i own a 1060gtx and convert a full fields car take around 30s)
>>not usable for a realtime conversion