I agree to Mick's words completely.
One more remark to the file size:
A 1024x1024px texture file in DXT3 compression has a size of about 1 MB, the same file in 32bit uncompressed amounts to 4 MB. Imagine an average aircraft consisting of four or five of this full-size texture files (fuselage, wings etc...), and you can tell the difference of the data masses your system has to handle.
This might be a good point
pro dxt3 compression - but on the other hand, dxt3 creates these ugly artefacts and blurries already mentioned, especially on tiny details.
These are my Fat Albert textures for the PAD C-130J in DXT3:
Note the panel lines and the insignia.
Here's the same in 32Bit uncompressed:
They aren't razor-sharp either, for the whole fuselage texture consits of a 1024px file, but you can tell the difference.
I think Bob May of PAD made a good compromise:
The textures of the C-130J package are DXT3 compressions, to keep the whole download size to a reasonable amount, but he also offers the 32Bit textures as a seperate download for those who like to take a closer look...
Cheers,
Markus.