But then that begs another question. If it is better to resize down
from hi-res, why doesn't Sony do exactly that in their camera? And
if they do that in the camera, then wouldn't it be better to shoot
in 640 x 480 if you want to display only in 640 x 480?
I've always assumed that the Sony camera does exactly that. If you
shoot 640x 480, the camera is still using all five million sensors,
then it's resampling the image down.
On the one hand, maybe Sony doesnt use the best resampling
algorithm because either they were (1) too lazy to program it; or
(2) they wanted a fast algorithm and were willing to sacrifice
quality.
On the other hand, since the resampling takes place on the original
CCD data which uses 14 bit color depth, it might be better than
resampling an bit color depth image.
And I guess the answer is as others have stated, it's EASIER and
FASTER for you to shoot 640 x 480, but all the images you shoot
will be useless for anything but the web. If you shoot at full
res, the photos can make great 8 x 10 prints (better than film).
So if you think you are shooting something important, shoot full
res, but if you are sure you just need the photo for the specific
purpose of posting to the web, go ahead and shoot 640 x 480.