Modern GPUs (already last gen consoles) do not truncate BC5 interpolated value pair (to 8 bit) after decompression. This allows more precision than 8 bit uncompressed. However the BC3 format alpha is truncated to 8 bit after decompression (so this particular format never exceeds 8 bit uncompressed in quality).Not sure what you're referring to. R8G8 is better than BC5 whenever your average angle is above ~12 degree. Otherwise BC5 is only better if your encoder can recognize the 8.6 fixed point precision possible with the hardware, or if the encoder doesn't if it happens to be better by chance as the hardware does 8.6 anyway.
8 bit uncompressed channel provides 256 different values. This is not enough for large smoothly curved high specular surfaces (such as car hoods) especially in physically based lighting pipelines. You can see some minor banding in the highlights.
BC5 has two 8 bit endpoint palette for a 4x4 tile. There is 3 bit interpolation value between the endpoints (8 different values). On a large smooth curved surface the palette endpoints are very close to each other. In areas with the most notable banding the endpoints differ by one. In this case the 3 bit interpolation gives you 6 extra values between the 8 bit endpoints. This produces quality higher than 10 bit uncompressed channels. Crytek's few years old SIGGRAPH presentation describes the benefits of this normal texture compression method.
Rough areas suffer some LSB bit loss from BC5, but often this is impossible to see by naked eye, since rough areas (by definition) do not have smooth highlights (banding is not possible). Also if you use toksvig mapping or some other specular AA method, it will smooth your highlights at rough areas, further hiding this particular issue. In the end BC5 with Crytek style texture compressor beats uncompressed R8B8 in quality and needs half the bandwidth and half the memory.