I agree with the size complaint. Its unbelievably annoying when I have to embed a bitmap image in a pdf and turn some 75kb jpeg into a 26mb pdf for compat reasons
This sounds like a very bad software for pdf creation. Notice that the pdf standard contains the jpeg and the png formats as subsets, so you can embed such images directly into a pdf file.
Yes, literally just copy everything between stream/endstream for a DCTDecode image and you can save it as a JPEG. Sounds like the tool's creator didn't know about that encoding.
