i have 1bit, 0.5bit per pixel fileformats.. does that mean i have to do my calculations on 0.5bits per colour per pixel? i guess not
fp16 has about half the precicion of fp24, this cummulates _VERY_ fast.. its about the same as listening to 8bit sampled audio compared to 16bit sampled audio (so even non-both-gpu users can get a "grip" on it..). it adds precicion behind the 0.0009765625 range.. thats about 1/1000
fp32 adds precicion behind the 0.000030517578125 range (for numbers between 0.5 and 1, that is).. there it adds quite a bit to it.
24bit audio sounds more nice than 16bit audio, yes. definitely. but in general, you have enough quality with 16bit audio (fp24).
the main trick is, todays pixelshaders have a very restricted instruction count. if it would have no pixel shader at all, even fp64 wouldn't help, as the final output is still only 32bit (a.k.a. 8bit per component) colour.
todays pixelshaders can't cummulate errors for that long, errors in general can't scale up too big. fp24 is a good balance.. it is precious enough to allow for most shaders of today, with the 96 pixelshaders instructions at max, to work at good quality. fp32 is bether, but in that restricted area you won't gain much anymore.
for ps3.0, with much more instructions, fp32 gets needed. errors would else cummulate too much..
oh, and, yes, nvidia was stupid by creating fp16 because of cgi.. they don't render anything at fp16. they just store it at that.. they even do a lot in fp64!
calculations should be done at high enough precicion all the time. storage doesn't need it. as i said.. 0.5bits per pixel are sometimes enough
oh, and, Chalnoth, you're.. rather stupid