Hi Mike.
The Png solution was matured from a series of considerations. First of all, many times, when rendering from Blender, you need an alpha channel. Png supports that. Also, I rather have a lossless compression than a lossy one. Again, Png fits the bill. It also compresses nicely, with a size smaller than Tiff or Targa. So, that's why I chose Png.
When it comes to playback it all depends on the final codec that you use, the size of the frame and the speed of your hardware.
If you render your frames from Blender using PNG, load the sequence in AE, add some stuff, render the final clip at 1280x720 (HD 720p) at 24fps, using either Photo JPEG at 75% or H.264 with Quality between Medium and High, multipass, frame reordering, you should get a good, smooth playback.
The Png delivery from Blender ensures that you get good quality images so that, when you apply the inevitable compression, your result will be good.
Hope this helps.
--
Paolo Ciccone
Pret-A-3D
http://www.preta3d.com
http://www.paolociccone.com