Hi.

> As a user I don't care about the restoring factory settings, as I back
> up my settings.

You might start to care if you bricked the system and need failsafe.

> The question is how much compression do you get and is
> this worth the price of having such a small overlay?

Yes. Squashfs compresses two to three times better than any writeable
filesystem option available in Openwrt.

> Has anyone merged the overlay back into the main root or is this not
> possible?

It is possible by using a jffs2 root filesystem, however then the size explodes.
Also for what purpose? Overlay uses space that is unused anyway, you gain
nothing by "merging it back into the main root".

> It sounds it me that openWRT on the WRT54gl is only really
> 
> able to be used for quite basic tasks due to the size of the overlay, is
> this a fair assessment?

No its not. If you build your own images with needed stuff embedded into
squashfs you can pack quite some features.

~ Jow
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