XZ compresses significantly better than bzip2. Here are the
compression ratios and execution times (using 4 cores in parallel) on
my /var/run/current-system (3.1 GiB):
bzip2: total compressed size 849.56 MiB, 30.8% [2m08]
xz -6: total compressed size 641.84 MiB, 23.4% [6m53]
xz -7: total compressed size 621.82 MiB, 22.6% [7m19]
xz -8: total compressed size 599.33 MiB, 21.8% [7m18]
xz -9: total compressed size 588.18 MiB, 21.4% [7m40]
Note that compression takes much longer. More importantly, however,
decompression is much faster:
bzip2: 1m47.274s
xz -6: 0m55.446s
xz -7: 0m54.119s
xz -8: 0m52.388s
xz -9: 0m51.842s
The only downside to using -9 is that decompression takes a fair
amount (~65 MB) of memory.