Why shouldn't I texture addons with JPEG images?

BIS' lead programmer, Ondrej Spanel, says that, while JPG textures can be used, the performance overhead when using JPGs is quite significant, as JPG decompression must be done by the CPU.

Another point is that mipmapping does not work well with JPG textures in OFP. Therefore, JPG objects viewed from greater distances may be rendered too fine, causing graphics performance overhead for using mipmaps too large for small objects.