Here is a table showing 33% reductions of photos taken at all four different quality levels, compressed to a JPEG that has 50% quality retention factor. They all have been taken under mid-morning sun at 8.6 inches distance from the subject. Enlargements of the middle portions of the stem can be seen elsewhere. Even at 33% reduction, the photos are still about 150% of the actual size (assuming your monitor has resolution of 72 pixels per inch). The images are about 16 kB each.
Note: to view this page, you really need a monitor capable of displaying thousands of colors, and a 24-bit color setting is is highly recommended.
My conclusion: the medium quality is just fine for most purposes.
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 Low quality. This fits 20 photos in memory. The photo is slightly fuzzy compared to its neighbor.  | 
 Medium quality. This fits 12 photos in the memory. The sharpness is barely lower than on the photos below.  | 
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 High quality, fits 7 photos in memory. I am hardly pressed to see much difference compared to the medium quality (above right).  | 
 Lossless - OK, so it is somewhat smoother and sharper than the others, but not that much to justify running with the camera back to the computer after every two photos.  | 
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