In another post, I have uploaded and documented a minirt init modification handling cloop and squashfs transparently for the user, just using cheatcode "squashfs". It's for pure 64-bits, but the modification for 32-bits is trivial.
IMHO, present day squashfs seems to be about as stable, efficient and versatile as we need for this kind of use, and its widespread and growing use indicates others think the same.
So, with a "uni-minirt", KNOPPIX may still be distributed as cloop image, but subsequent remasterings will not have to unpack minirt.gz to make modifications in order to turn to squashfs. I think lots of remasterers will prefer squashfs, as it gives (at least) slightly simpler and faster workflow with at least as good results. OTOH. I can't see anything right now forcing us to use squashfs.
And, just for the record: This is not about the practicality or usability of cloop per se, but about the actual Knoppix use case.
Altair 8800 CPU Board Working *TESTED* reproduction
$790.00
$5450.00
Factory New MITS Altair 680 Enclosures
$600.00
S-100 backplane motherboard bare PCB 9 slot (for Altair/IMSAI)
$30.00
Solid State Music (SSM) IO2 S-100 Parallel I/O Board, Manual, & Box Altair IMSAI
$125.00
Popular Electronics Magazines January 1975 and February 1975 Altair 8800 Issues
$595.00
MITS ALTAIR 8800 Original Vintage Microcomputer
$6000.00
IMSAI 8080A MPU-A CPU Parts Kit Not Altair MITS (board NOT included)
$59.95
VINTAGE DEC 1975 VOL 1 ISSUE 1 SCCS INTERFACE MAGAZINE MITS ALTAIR COVER & ADS
$358.99
Wenger laptop backpack, Altair, 15.6 inch, tablet compartment, Black
$164.99