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.
HyperX FURY DDR4 16GB 3200 MHz PC4-25600 Desktop RAM Memory DIMM 288pin 2x 16GB
$127.20
HP 15.6" FHD Notebook AMD Ryzen 5 5500U 16GB RAM 512GB SSD Natural Silver
$339.99
A-Tech 8GB DDR3 1600 PC3-12800 Laptop SODIMM 204-Pin Memory RAM PC3L DDR3L 1x 8G
$13.99
Team T-FORCE VULCAN Z 16GB (2 x 8GB) 288-Pin PC RAM DDR4 3200 (PC4 25600) Intel
$33.99
HyperX FURY DDR3 8GB 16GB 32GB 1600 MHz PC3-12800 Desktop RAM Memory DIMM 240pin
$15.90
Pair Kingston HyperX FURY 16GB (2X8GB) PC3-14900 DDR3-1866Mhz Non-ECC Memory
$18.95
Team T-FORCE VULCAN Z 16GB (2 x 8GB) 288-Pin PC RAM DDR4 3200 (PC4 25600) XMP
$34.99
Crucial DDR3L 16GB 1600 2x 8GB PC3-12800 Laptop SODIMM Memory RAM PC3 16G DDR3
$22.50
Lot of 50 4GB PC3-12800U DDR3 1600 MHz DIMM Desktop Memory RAM
$100.00
Kingston HyperX FURY DDR3 8GB 16GB 32G 1600 1866 1333 Desktop Memory RAM DIMM
$39.95