ImageBatch should work fine. You can set entire directories and doesn't have a limit on number of files which makes it real convenient.
It's great for sheer file size reduction. I'm not sure how of much a fidelity hit we're talking about, though.
By running game-specific images through a conversion process overall size could probably be greatly reduced. From what I've seen very few assets require transparency while most could be JPG instead of PNG. For example, 2991 of PS2 covers (default theme + separate complete pack) stand at 170MBs when converted to JPG.