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PNG is really great, and I agree is the future, but slow download times (compression) can be an issue, and out PNG banner doesnt work in IE6 properly, with a white border as transparency isnt *properly* supported; but it offers better quality to compression ratio than gif obviously, and alot better then JPEG, but JPEG is way better for images, and PNG for graphics (over GIFs which I think are almost dead). All new browsers do and will support PNG/PNG2 and JPEG/JPEG2, and micorosft will be the only one, with IE7 supporting their propretary format; and it wont take off...
PNG will make GIF become obsolite as there is better lossless compression, browser compliancy and internet speeds; and JPEG2 will be the standard for photos with millions of colours
jpg gives better speeds and also better quality for photos, BMPP is a bitmap good for some momotone graphics, and... bitmap (not vector) graphics. TIFF is inductry standard for lossless compression, unlike JPG, and that really is the how PNG is better than JPG, TIFF, much like PNG has larger file sizes sometimes, but little or no compression, great compatablilty, and is also smaller however than your photoshop PSD, although I dont think they support layers, you can use the EPS TIFF that can.
Please Microsoft, you do not need to add to complications of the digital world. With the flash memory competition out there, we don't need formats for pictures. I would especially hate that format since it would not help my mac whatsoever.
There are sufficient great options out there - JPEG(2000, TGA) and PNG have already been mentioned. I think Microsoft's new proprietary format is only aimed at controlling the market... not at advancing technology or convenience.
Microsoft not only tried to replace MP3s but PDFs and Java. The latter two attempts have quite miserably failed. In the audio section, they've created a good deal of division and disturbance. Many corporate audio providers do use Windows media formats. However, as long as this content is accessible for all platform the problem is one of poor choice rather than actual exclusion. This new attack on the format front may not prove that harmless.