Description of problem:
Now (kernel 2.6.35, squashfs-tools 4.1) that squashfs supports xattr it may be possible to use squashfs for / directly instead of using ext3 inside of squashfs. (xattr support is needed for selinux support.) This should speed up both creation and use. It's possible that there are some other gotchas.
This package has changed ownership in the Fedora Package Database. Reassigning to the new owner of this component.
Note that this is going to impact installs from the live image as we will need to run unsquashfs instead of dd and we will not be able to use the resize trick. This will have performance implications. Also there is discussion about using a single way to install for both anaconda and liveinst they may impact this.
During an unrelated chat with wwoods today he mentioned that the extX inside squashfs is needed because we want to be able to do a writable overlay which you can't do with just a squashfs. So I don't think this will happen until squashfs has write support.