Hi Centralware,
It is an interesting question, thanks. While in the past mainstream distros used ReiserFS or XFS in the last years Ext4 become the de facto standard. It is small, have a good performance and safe in case of crashing. Ext4 journaling saved my life in few cases. Formatting time is just one thing, but the operational performance is more important. Ext4 is good choice in most cases, but for specific applications other file system may be better. For example MongoDB database works much better on XFS. I tested btrfs, it offers nearly the same performance as ext4, the big advantage is the additional built-in feature set like handling virtual volumes, etc. but it is big, including tools and these extra features are not required by average use cases so I dropped to include it in piCore
The beauty of piCore its flexibility. The system itself is in the boot mmcblk0p1 partition, mmcblk0p2 is just for the preinstalled tcz packages, not required by the system. Current boot system supports multiple initrd files. You can create a small initrd with the XFS or btrfs kernel modules and add it to the boot config. In such case these partitions will be recognized during boot, you can replace the default ext4 with XFS or btrfs partitions with the same preinstalled packages.
Regards,
Béla