[cmurf]

Btrfs supports compression. A "seed" flag that makes it read-only. If you 'btrfs device add' a rw second device, it can be read-write with all writes directed to the second device, e.g. /dev/zram device for volatile overlay for e.g. a LiveOS boot, or you can add a blank partition and then remove the seed which causes the seed data to be replicated to the rw partition. Plus all metadata and data are checksummed.

zstd support since linux 4.14, and a mount time option for compression level since linux 5.1. So you could get very good compression ratios equivalent to squashfs, but squashfs will still come out slightly ahead because it also compresses its own metadata, where Btrfs doesn't.

My best guess is squashfs is a sufficiently successful project that it's allowed most distributions who depend on it (quite a few) to sit on its laurels.