Modules in base are loaded in RAM as all other files, gzipping them saves some RAM.
gzipping modules in .tcz reduces tcz size by cca. 10%.
depmod is executed at boot, I referred to case when one is changing modules online in a running system. Also in initrd dep file must be in sync with modules in initrd.
When I built my kernel, I just used the dep that was in the installed modules directory .....so all of the lines referred to the .ko extension, I did gz the modules. It did work fine. But I would rather do it the right way.
After building the kernel and installing the modules to /tmp/modules, and gzipping and re-running depmod, All I get is a zero length modules.dep file
cd /tmp/modules
find . -name *.ko | xargs gzip
sudo depmod -a -b /tmp/modules 3.12.7-piCore+
This is being done on my cross-compiler system which is an debian wheezy-amd64 based system.....