Time is the flaw in your idea.  If you had a really slow blockchain where new blocks were only appended every hour or so, perhaps then it could handle extreme compression.  But the undeniable fact is that uncompressing such files takes time. 

It also places an additional burden on memory requirements, so those securing the chain would need more powerful hardware to perform that task.  If you limit the potential of who can secure your chain in that way, chances are, it won't be a very secure chain.