Apparently you can embed GZipped URIs? We should figure out how to do this!

Using http://placekitten.com/1600/1000 as an example:

JPG: 381973 bytes
Data URI: 441920 bytes
GZip'd URI: 334199 bytes

So switching to a Data URI is a 15% increase (Wikipedia claims it's 30% on average). Gzipping that actually makes it about 12% smaller than the original.

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Anonymous (not verified) commented
Title: GZip the resulting Data URI to reduce file size » Page compression is important when using Data URIs.
Component: Code » Documentation
Category: feature » task

Gzipping happens either when Drupal serves a cached (and gzipped) page or when the web server serves the page and compresses it through mod_gzip. It's not something we can either promote or inhibit with this module.

It should however be documented that server-side gzip is an important factor for this optimization.