Why does photo size increase on iPod?

This has been asked before, but the questions end up archived before anyone can give any answers...
I have a folder of pictures on my computer that totals 1GB. When I sync this folder to my iPod, it takes up 3.5GB according to the "photo" section of the bar.
Seriously, this makes no sense whatsover.  Is it converting my JPEGs into high-res PNGs or something? If so, why on Earth would it do that for an iPod when it doesn't need to be so huge? It should be converting them DOWN not UP.
What's the deal?

Actually I found the reason.  They do convert the photos into 640x480 Hi-Quality BMPs so that when you are navigating with you finger (swish, swish, swish) there is very little to no load time.
I sent feeback asking them, especially with faster CPUs now in more recent iPods, to please make this conversion OPTIONAL so that those of us who don't mind a bit of load time don't have this upconversion.

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