I think this is more a legacy thing that has never been changed, right from the beginning DBPro has supported DDS as it is the DirectX format used for textures since DirectX 7 and the texture loader is in the DirectX SDK. I think that with DirectX 11 and onwards you can have multiple textures inside one DDS file allowing some stuff that PNG can't do.
Did a bit of digging and found the following points:
- DDS is quicker to load in VRAM than PNG, due to no need to decode
- DDS is smaller when stored in VRAM
- The tradeoff is you have a large file size on disk to cut down the time to load in to VRAM
- DDS is designed for use in game engines, PNG isn't. Why not use the format actually designed for this purpose.
I don't see any reason why PNG can't be used now instead of DDS. In-fact maybe my memory is playing tricks on me... but I can remember PNG textures working in FPSC X9, maybe they do work in FPSCR as well.
EDIT: While I was editing this I saw Tattie has posted a similar answer, his also answers this similarly.
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