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Re:Shakespeare.txt.jpg: A JPEG compression experiment by VMG on Monday June 17, 2013 @01:36PM (#5894575)
That is more about built-in redundancy and error correction than lossy compression.
Re:Shakespeare.txt.jpg: A JPEG compression experiment by zokier on Monday June 17, 2013 @02:04PM (#5894780)
But such features could be exploited to make lossy compression. If humans can recognize words with some of the letters randomized, then there is no need to store those letters individually. Instead just insert random letters at decomperssion phase.