lol...
its called compression.
JPEG is a compressed (lossy) format, which would lead to pixelation around highly detailed areas.
There is no "re-encryption" that takes place, JPEG photos are never encrypted, unless you actually encrypt them with some other software, as I don't believe PhotoShop contains any form of encryption besides when creating PDF files.
They can be "encoded" but typically not, and that wouldn't lead to pixel loss.
Encryption would take place outside of photoshop, and if the photo was encrypted it would not be viewable without an encryption key.
And as far as redrain photoshopping them, they were standard photos - not digital ones - and as far as Phil photoshopping them, I doubt he would waste his time making up fake signs.
You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. - Steve Jobs
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