Howdy,

You are correct in loss of image quality as you will ALWAYS have that where .jpg is used.

As you know when scanning for the internet/screen the best you can get is 72 dpi (there are better monitors) and quality at that depth is limited.

If someoen is going to take the time to color correct, alpha channel etc, then a program like PhotoShop (7 is out) is the choice Mac or PC.