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.
10 PCS Cisco GLC-LH-SMD 10-2625-01 1310nm SFP Transceiver Module
$85.00
New Cisco w/ Green Hologram SFP-25G-SR-S 25G SFP28 SR 850nm 300m LC MMF Module
$69.99
NEW Open Box Dell PowerConnect M8024-SFP+ Quad Port 10GbE SFP Module 0N805D (BH)
$29.99
GENUINE CISCO DS-SFP-FC32G-SW SFP NEW SEALED SEE PHOTOS SHIPS FREE
$69.99
Genuine Cisco SFP-10G-SR V03 10GBASE-SR SFP+ Transceiver Module 10-2415-03
$8.00
10Gtek ASF-10G-T 10GBase-T 10GbE SFP+ to RJ-45 Copper Optical Transceiver Module
$35.99
(Lot of 10) Cisco SFP-10G-SR SFP+ Transceiver Module 10-2415-03
$40.00
GENUINE Cisco SFP-10G-SR V03 SFP+ GBIC Transceiver Module 10-2415-03
$6.80
New Cisco w/ Green Hologram SFP-10G-LR-S 10G SFP+ LR 1310nm 10km SMF LC Module
$34.99
Lot of 10 - HP 10Gb SR SFP+ Transceiver 455883-B21 455885-001 456096-001 850nm
$23.99