This post from me is NOT objecting to this compresson technology: But it intends to have us look to how we got to where we are.
Puppy has an artificial size limit that was imposed as a target back in the days of dial-up where that concern was about the size of the bootable payload (ISOs) over 9.6Kb link. Over the years PUP has found crafty ways to add more stuff in the payload by changing the compression technology for the shipped payload(s). Today we are NOT limited by that awful communications transfer speed; rather for some cell phone users (and some ISPs) of today, we are limited in a monthly allocation for data transfers. As such PUPs attempts at its compressors is mainly aimed to satisfy that mere end, while insuring it is bootable via today's BIOS-EFI PCs.
For me, I am not concerned about the payload, as with ISO booting and save-folders, I am not bothered by the compression technology. MY BIG ISSUE is performance! NOT compression!
If the CPU load is increased by a constant compress-deompress use, this impacts the load, electric demand/battery and heat on any system.
So whatever or which is decided for selection, it should accompany its operation and most importantly its performance on RAM based users,
Hope this helps.