neonix mentioned compressing with upx -9 in a different thread. I decided to investigate.
The largest extension on my system is brave-browser.tcz at 180 MiB.
If I unsquash brave-browser.tcz, compress just the main brave executable using upx -9, and recreate brave-browser.tcz, size of the extension drops to 152 MiB. I'm testing the shrunken extension now and it's working fine. Importantly, upx.tcz does not need to be loaded for the shrunken brave-browser.tcz to work.
Should I be using the upx (or similar) compression tool to reduce the size of the large extensions that I maintain (e.g., brave-browser.tcz)? Are there any downsides? I'm very interested in hearing the opinion of the TCL developers on this.