Infinisearch said:
In the same way 3DC seems to be more suited to normal maps than DXT5 is DXT compression or 3DC suitable for height maps, gloss maps or storing error terms in the first place?
DXT is pretty much based on the idea that colours don't change all that much in a 4x4 block, and they can be approximated by storing two RGB values and doing simple interpolation for all 16 pixels. This basically means that if you want to store multiple channels, they would have to be similar in some way, else the interpolation will be very inaccurate.
It also means that if values differ greatly within a 4x4 block, there will be considerable compression artifacts.
3Dc compresses the components separately, so you can easily use 2 completely different channels in the same texture.
The idea of the compression is similar to DXT, and it also uses 4x4 blocks.