What you say is true, but I do not see it as being an issue. If I carried one of these things around, it would hold such things as copies of insurance papers, deeds, etc. I simply cannot imagine having to "edit" such documents.

On the other hand, what you say is very valid for family photos where you might want to retouch them or remove redeye.

JPG files also capable of compressing a LOT more. I do not know how well a B/W document might compress, but for a photo, using a lossless compression would reduce file size by approximately 1/2, and JPEG could reduce to 1/10.

Also, JPEG is such a universal standard, that I cannnot imagine not being able to open it. At the very least, any browser can open it.

And your comments on Office are quite true. But I would not want to have to look at XML data with my eyeball. You could do it, but why when you don't have to. Actually a zip of an HTML file would be perfect, as you could keep formatting, and embed graphics and such.

Just my $0.02