Good question. I would guess that it would just decode it again when it reloads the page. That shouldnt happen often, if people set the page's time-to-live correctly. If they don't, you have to reparse the page anyways, as any content could have changed.
When redisplaying a page without reloading, the browser should just use the parsed page.
2. Keeping only the encoded data would mean having to decode it every time the image gets redisplayed.
Ideally, one would remove the Base64 coded data from the document, and cache the binary data.
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