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In order to access the compressed data in-game it needs to be decompressed, so while you may be saving disk space and memory usage you're sacrificing cpu cycles and FPS, which tend to be more valuable resources.
The trouble is that memory usage is what's visible in-game and players will often mistakenly think that it's an indicator of how efficient an addon is, so I guess if you want users to think your addon is lightweight you can compress it which ironically winds up costing them more resources.
I don't know what the solution to this is, but I admit that I will personally take measures to reduce the size of a database if it starts becoming too large. I had to import a 3mb table once and the game wound up expanding it to use 40mb of ram. By changing the structure of the table I was able to get it under 10mb but it did add some overhead to the lookups.
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