Because it turns out that fuzziness and compression artifacts have a higher-level meaning: when you see them, you know something has been lost. That's an important (if inadvertent) signal. We need to make sure the artifacts don't go away.
In the worst case (and more likely?), we are going to ban computational substrates large enough to perfectly forge important data altogether because it will be too easy to misuse. We‘d essentially go back to ~1960s electronics to have at least halfway functioning mechanisms of creating social trust, namely high-bandwidth personal interactions where every thought and every action has a high chance of leaving a trace in the real world and thus contributing to someone’s reputation. No blockchain and no other technology can create nearly as much trust as that without being highly prone to misuse.
But if you're using photography to look at things in the world, that's a whole different story.
The only difference is that this compression is better at hallucinating, so you don't get ringing artifacts or blocks, but some internally consistent alternate reality.
If you don't want to lose data you should not use lossy compression at all. JPEG can erase the distinction between digits as well.