ehem.. about the cpu cycle, lzo compression could reduce the cpu usage, but i don't know by how much, probably still wouldn't worth the gain too. i don't know. but even if it does gives a worthy gain, maybe there's too much work to be done, lzo needs kernel 2.6.38 kernel to work if i'm not mistaken. compression(if possible) could be applied to something like the boot partition? maybe it could improve boot time, just a maybe.
looks like i didn't consider everything before i speak. thanks mblaster. ^.^