Hmm... how about powerpacking everything, executables, datafiles the lot and then have powerpacker.library and powerpackerpatcher take care of all the hazzle?
PPP unpack PP files on the fly in the background when a tool access suck a file so the tool itself doesn't have to be PP friendly.
Dunno if it's practical but you might squeze out some more from a dd disk that way compared to using lzx and you don't have to unpack it all from the start? Dunno if there's not some XPK compressions that's better than lzx?