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It's just better overall... it's faster, lower memory usage, more robust, easier to work with, easier to install, has more options, creates better quality images, etc...
for example, making a thumb in imagemagick is one line of code, and you can easily sharpen it, specify quality, size, etc... with GD all that is a pain in the ass, even something as trivial as moving the watermark to the top right instead or resizing it at the same time becomes an exercise with GD or if you wanted to sharpen the thumb in GD you are shit out of luck unless you are willing to jump through major hoops...
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