I normaly don't put a post on mailing list for some commit i put on wok.. But this time i decide to. I added squashfs+xz to slitaz kernel so we can have squashfs with greater compressing the gzip. We can't use the lzma one since slitaz has some custom code to free up ram with lzma. This causes problems for squashfs+lzma images to be mounted. So squashfs+xz is the best way around this custom code. It allows the custom code to say and my not to break livecd. It also allows squashfs with greater or equal compressing then lzma to be used for loram-cdrom-sqfs flavor too.
I hope this helps explans things. I also hope it doesn't break anything.