Both hex format and the traditional "escape" format are automatically
handled on input.  The output format is selected by the new GUC variable
bytea_output.

As committed, bytea_output defaults to HEX, which is an *incompatible
change*.  We will keep it this way for awhile for testing purposes, but
should consider whether to switch to the more backwards-compatible
default of ESCAPE before 8.5 is released.

Peter Eisentraut