> Any objections?

   Yes, I object. "xz" is not sufficiently well spread in default
   system installations yet. Use "bz2" if you must change. That gives
   better block robustness. Changing for size reduction is a
   questionable motivation. Changing just because others have done so
   is even worse.

xz is spread enough within the GNU project more so than bz2, and some
projects have stoppped distributing gz tarballs completely.  But as
compromise, since your objection is immensly valuable, lets distribute
both gz and xz tarballs.

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