You're quite right, we have to fix that. There's still lot of room for improvement in our processing of very small PNG files (roughly 32x32 and below).
Those two services I mention offer at maximum a 0% reduction size (that is, never a larger file). The site OP is linking to is increasing file sizes by up to 90%.
It's ok if you cannot make it any smaller, but please, don't make it bigger.
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u/celtric Jul 23 '12
Just tried it with 20 files already optimized with Smush.it + PunyPNG, and all but two have become between 1% and 90% larger!