I don’t know Apple’s actual stance on this, but I read somewhere (in an article awhile back) that PNG files (even those larger in file size by comparison) are actually more efficient than JPEGs on iOS devices because they go through the “PNGCrush” algorithm which makes them smaller, leaner, and faster to load. So, even though you might have a PNG-8 that’s 50K (for example) and the same file is 100K at PNG-24, the difference might not be that drastic after the larger version gets crushed down in size. You could probably test this out by building the app using 10 images at 24-bit depth, then building the app with the same 10 images at 8-bit depth, and compare the overall app size. It might not be as drastic a difference as you think.
http://en.wikipedia.org/wiki/Pngcrush
If you’re still struggling to keep the app size under a certain limit, then yes, you might need to settle with JPEGs… and maybe lower-quality JPEGs too. If you have hundreds or even thousands of full-screen images in your app, it’s going to be difficult to keep the overall app size under the limit.
Yet another option is to save them at smaller dimensions and then use Corona to scale them up in the app. It wouldn’t look great (because they’d be stretched, and quite possibly you’d see some artifacts), but if it means A) releasing your app with stretched backgrounds, or B) not releasing it due to size constraints, then the former option is obviously better. 
Brent
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