As mentioned in another thread, squashfs caches to ram when the contents of the mounted extension is read. The default block size used with mksquashfs is 128kb. When 4kb block size is used, the runtime memory overhead of squashfs extensions is substantially reduced, almost cut in half. Both before and after flushing memory cache. The only price is slightly larger tcz extensions. But that is worth the performance benefits.
The squashfs-tools extension has been updated to default to 4kb block size. Use the new extension, or use this command when making extensions:
mksquashfs dirname/ extensionname.tcz -b 4096
I will soon update the extensions in the repo to the smaller block size.