We don't support a compressed kernel anymore but have a way to compress user executables which saves about 30%. Sadly, even with straightforward decompression, that process on ancient 8088's sometimes takes longer than reading an uncompressed executable. But we're finally at the point of having "too much stuff" to fit on a floppy. And of course everyone wants games. (Don't ask about Doom: yes we have it, no it doesn't fit on a floppy :)