Save for Web vs pngquant2
Images were created with pngquant 2.0.1 at default settings and Photoshop 13.0 with Save for Web and Perceptual palette. Optimized file sizes are from ImageOptim 1.4.5 .
pngquant plug-in for Photoshop is now available .
Without dithering
Photoshop CS6 256-color image shows banding caused by low quality remapping (looks like only 15 bits of precision).
pngquant2
More adavnced palette selection and correct remapping can avoid a lot of banding.
With dithering
Photoshop CS6 210KB (189KB optimized). Poor palette creates more dithering, which makes compression less efficient.
pngquant2 195K (117KB optimized). Better quantization and adaptive dithering give smoother image and almost 40% smaller file size after optimization.
Without dithering
Photoshop CS6 Lack of support for palette transparency forces authors to use 195KB PNG24 (3.3 times larger file than PNG8+alpha).
pngquant2 Supports alpha channel in palette mode, and still gives less banding despite needing more palette entries for semitransparent shadow and anti-aliasing.
With dithering
Photoshop CS6 77KB (69KB optimized). Transparency dither still applies matte color, creating completely invalid result. Image has grainy look and jagged edges.
pngquant2 64KB (58KB optimized). Smallest file size and high-fidelity transparency.