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, someone intentionally or accidentally used gox's poor handling of mutant transactions to extract double-payment from their customer support team. Gox blamed the bitcoin protocol for their own stupidity. Then after the press release, someone started a massive DoS attack against the bitcoin network. What happened to gox over the last couple of months is totally different from what what is going on right now.
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.