hey guys! I think we can all agree that the size of the image itself is important, and should be a power of 2 for both width and height.
What's still in contention is whether or not having an AtlasSprite of any size would have any negative performance implications...
From my basic understanding of AtlasSprites/AtlasSpriteManager, the entire spritesheet is in memory all the time, and AtlasSprites are simply copied to the display from the rect that it's defined from. Since the spritesheet itself is already in memory once, it doesn't cost any more memory to draw the same AtlasSprite 10 times or 20 times, since it's still in memory the one time....
Of course it'll still be slower to draw 20 sprites than 1, since that means more screen display has been changed, and thus the GPU has more work to do, but I don't think it costs any more memory....