Did you read the article? The point you are making here is PRECISELY the point that the author was making in the article: that a lossy format can be far, far s

Did you read the article? The point you are making here is PRECISELY the point that the author was making in the article: that a lossy format can be far, far smaller. He then goes into the details (from a high-level point of view) of what kinds of losses H264 incurs.