So I guess it's also a common knowledge that a compressed stream needs to be uncompressed in order to use it. So argumenting that compressed stream takes smaller space on a floppy disk doesn't mean that it will also take the same amount of bytes in memory.
Also I'd argue if HTTP1 can be treated as a pure text format, since it requires \r and \n as EOL markers, even on systems that only use \n. Strict binary requirements like this shouldn't be needed if it was a text protocol.