In most cases the compress option has given benefits for me.
It has has helped not only in getting the storage reduced by 70 to 90% but also helped get performance gains when retrieving from huge datasets.
It all depends on what the bottleneck is. Whether IO or CPU.
On compress option Vs Varchar:
The data sets created with say 100 records occupies 20 to 30% less space than the RDBMSes with Varchar option. So even if a varchar option is made available still the compress option might be valid.
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