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tedster - 9:48 pm on Mar 22, 2001 (gmt 0)
With no curves or angles, there are no alti-aliasing pixels to give a blurry look. This would always be a gif image. I have used the trick in several cases, but the image is mostly a design accent, nothing more.
I can think of only one instance where this technique would give good results: if all the edges in an image are perfectly vertical and horizontal, like a Mondrian painting, or perhaps a bargraph.