Fed doesn't have authority to regulate jack. Fed is a private organization, set up by banks in the '30s to self-regulate themselves, presumably to stave off the government descending on this industry and regulating it to the ground. I still don't understand why they weren't disbanded in 2008.
No, you are wrong, sir. There are many who are recording all Bitcoin network traffic, myself included. I can see that Gox had all their outbound transactions slightly changed and rebroadcast. After that went public, being now outed and in the open, having nothing to gain from stealth the attacker moved to attacking everyone they could.
You assume here that size doesn't matter, when it might. If the difference is only initial download size in your game, and is a few dozen MBs, then yes I agree. but for some applications, this is content that is loaded in runtime, and since size DOES matter in this regard, some applications will need to upscale images.
I actually heard about this service from the founder; I've been using it for three months now and quite happy with the choice of photos and quality of printing.