As I just saw and posted about on ubuntu-devel-discuss [1], using the
new squashfs layout file for a CD made Ubuntu's hard-disk install size
180 MB bigger on ext4. I presume it's due to extent allocation breaking
due to the pattern of file copies.

The status of this bug now depends on whether Live CD boot time or hard-
disk installed size is most important for Ubuntu.

[1] https://lists.ubuntu.com/archives/ubuntu-devel-
discuss/2010-October/012198.html

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LiveCD layout optimisation
https://bugs.launchpad.net/bugs/589629
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