So we have a choice right now: low resolution, or missing annotations. If I had to choose, I'd pick the missing annotations, because I use a lot of images in my talks and don't use annotations at all. That's just me, but following my compelling usage survey (n=1) I'll leave the package this way for now.
Perhaps as an interrim measure, maybe a command line option and/or hot key to switch between modes would make sense? Pending a proper fix to the underlying PDF library, of course. Or an ugly hack involving rendering each page twice, once in each mode. --Barak.
