@Chip you missunderstand i am refering to the native programs being distibuted as cramfs or squashfs files has nothing to do with the rom images although if you had some roms that always played it might shave a little off ....
you say most of my space will be taken up by music and roms.... NO... what about the native games? they will take up space the cube mods are pretty big and depending on the music file the would benefit as well... anywho squash files are super easy to make and a gui to make them wouldn't be too hard (its been done before)
anyhow if you have a music collection why would you not want it in a squash or cramfs? you can't delete them accidentially and they take up less space....
oh and you gotta remember you aren't just compressing one file again ... you are compressing maybe hundreds or thousands and you can eek some more compression that way