I teach both Photoshop and Illustrator so I do have some background for this topic.
If you scan an image and save it as a PDF, it isn't converted into a vector format. It's saved internally using JPEG compression, which is not good for line art (solid color artwork like decals). So for decals PDFs are not a good choice if they are scans. (Unless you can override the default JPEG compression when you save the file, which many programs do not offer.) However you scan the images and then convert them into vector artwork in Illustrator. In that instance the PDF format does save the art as vectors which is a much better (and smaller) format for line art.
So, PDF is not a good format for scanned files but a is good format for vector files.
TIFF and PNG are good formats for scans like decals as they offer lossless compression that does not introduce artifacts. PNG files can also be saved as 8-bit (line art mode), further reducing file size without a loss in quality.
JPEG is the worst format for line art as it is a lossy compression format that introduces 'blobs' as K'Tesh calls them. If they are saved at a very low compression ration (or a high quality setting) the effects are generally not noticeable.
Using Photoshop and Illustrator you can take a good scan of a decal sheet and turn it into vector artwork that can be easily resized and is much smaller than the original scan in about 10 minutes. For poor quality decals you can trace over the original image manually in Illustrator and create new artwork from scratch.
Attached is an example of a quick cleanup of a scan. Took less than a minute. I also made a vector PDF from the scan using the image trace function in Illustrator. Whole process took less than 10 minutes. Converted to vector art the PDF is only 136K.
Just FYI,
Tony
before and after: