IPhone 4s (IOS 5) photo app editing Reduces the file size drastically.

Anyone else notice that after you take a photo the file size is about 3.7 MB or so, but if you edit it with the new editing features of IOS 5 the file size is reduced to under 1 MB.  It really does not matter what you do, when you save it (and it distroys the original by the way) the file size is reduced (and thus the quality) to as low as 296 KB.  This is ridiculas. Be very careful or you'll end up with a bunch of useless photos.
Anyone else experience this?  Try it and email the result, that should show you the size (you do not get a choice of sizes anymore). I'll sick with the 3rd party apps until (if) Apple changes this.
Let me know what you think??

The upgrade to IOS 5.0.1 offered no fixes to this issue. Can't understand why 4 caused no issues with the camera and the update to 5 took it down. Anyone else find a fix for this?

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