Now, compression could actually make a difference
I did some fairly large tests a year or two ago when i implemented it in my Maplat framework. Depending on the page size (i sometimes have fairly large data tables that i use with jQuery), compression even speeds up working within a 100MBit LAN.
If the user works through a slow link (in this test me accessing the company network from home via an encrypted VPN tunnel), even small pages load quite a lot faster. Server performance degrades only slightly (e.g. the time the server requires to send out the page to the client), on DSL links the pages are still faster to load.
CPU load isn't greatly increased on my server. Ok, i only get about 50.000-80.000 requests per hour, and only about 10.000 of those from clients that support compression, and it's all very database heavy.
Sorry for any bad spelling, broken formatting and missing code examples. During a slight disagreement with my bicycle (which i lost), i broke my left forearm near the elbow. I'm doing the best i can here...
In reply to Re^2: PM CSS and markup optimizations (compression++)