It means a lot if David Mullen is favourably comparing RED to Kodak 5245 EXR filmstock. For the budget minded indie filmmaker, this is fantastic news.
REDCODE is VBR wavelet compression, so compressions of 12:1 is pretty much visually lossless since the format is so efficient and not prone to artifacts like DCT-based methods. Of course, everything I've read about it makes me think RED's implementation is extremely promising. For a strong showing of a first gen product, RED has got to have KODAK, SONY and others worried.