Not to forget that none current driver implements it in hw afaik. Mesa supports it, but I don't assume any gallium driver implements it. And if I want to compress my textures on hdd and uncompress them before sending to GPU, there are much better image formats (png, jpg, ...). You use S3TC not cause it compress so well, you use it cause it stays compressed in memory (e.g. we use it for groundtextures which would be >300MB if uncompressed), saving bandwidth & storage.
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