I'd like to know more about this crunch that was mentioned in the comments of the page that Michael got this information from. It would be awesome if it is open and patent free and is able to solve the st3c problem.
It's an encoder, that among other formats encodes to s3tc (it's referred to in several different names, confusion is great no), so it's still affected by the patents.
I don't recall it being bad.. I remember playing Enemy Territory on Woody with no problems... I'm pretty sure I was using blob graphics drivers though.
Linux really isn't bad for gaming, it's just that the open graphics drivers are lagging too far behind current generation games.. I think that's just a matter of manpower.. As somebody else said, if Linux can get a solid 5 FPS advantage over Windows on the latest games, then a *LOT* of people will switch from Windows.
I want to buy an AMD Trinity ultrabook, but the AMD 7000 series GPU support in Linux is scary bad..