I suppose, that qole means modernizing, wiki page, not particularly instruction about putting ED into dedicated partition.

By the way, i remember now - qole's updated instruction (2 posts, not only first one ) was what I used to create my partition, with modification to filesystem used (I was using ext3 at the time). Now, I'm using ext4 with satisfying results, so unless qole disagree for whatever reasons, I encourage kernel-power users to extract ED image into ext4. Of course, also modify corresponding lines in config files - replace ext2 or ext with ext4.

By the way, for performance hungry people, I suggest migrating from ext3 to ext4 for maemo /home - it boost speed for all maemo, and due to ED being chroot, it's also affected a little, due to maemo counterparts and symbiotic things running better/faster.