To me, JPEG cropping (the losseless kind!) would be more interesting.
With digital zoom, the resulting image will be rescaled and the final size will be the same (no space savings, aside from the fact that JPEG might then compress a bit more efficiently since there's somewhat less information).
i think barney was referring to the raw development feature. when you develop a raw file and have digital zoom enabled, the resulting jpg will be cropped. while this is a good solution for subjects in center of the picture, it is useless for subjects that are in the corner. maybe the digital zoom can be set to a certain position on the raw file.
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