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.
Vintage Vega 386/486 Motherboard With AMD 386-DX40 CPU 4MB Ram PARTS
$55.00
Intel Pentium 133MHz Vintage Ceramic/Gold CPU Processor SY022 A80502-133
$9.99
Vintage Apple iBook M6411 Indigo Blue Laptop Computer READ DESCRIPTION
$110.00
Vintage 90s Fractal Ecstasy PC CD-Rom Software - Deep River Publishing
$40.50
Vintage Texas Instruments TI-99/4A Beige Home Computer PHOOC4A Tested Working
$89.99
Vintage Black Posso The Media Box 16 Cassette Tapes Plastic Storage Case
$27.90
The Learning Company Reader Rabbit 1st Grade CD Program Vintage Preowned
$8.99
Vintage Seikosha gp-550at Atari printer very clean
$59.99
VINTAGE KB5151 Black Cherry MX (brand unknown, missing keycap)
$75.00
Canon PC 940 Vintage Copier (ONLY A COPY MACHINE NO PRINT) - For Parts
$149.99