Well, it does what it says. If you have say, a zip file full of photos, or one photo, it shows a thumbnail instead of zip file image (icon) whatever it may be.
My issue with it was that you could no longer tell, if you have a large mix of zip files and images, which is which unless you view each property of the image. I would rather have a pop up thumbnail view than the actual zip icon changing.
It may be what others are looking for but did not suit my purpose and found it to confuse my files in general when amongst images. Maybe an option to have a pop up would be great in the future release.
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