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.
Juniper EX 4300 EX4300-48P Gigabit Network Switch JunOS 21.4R3-S7 48 Port PoE
$249.00
Juniper Networks EX3300 EX3300-48P PoE+ 48-Port 4x SFP Gigabyte Ethernet Switch
$59.99
Juniper EX3300-48P 48-Port 10/100/1000BASE-T (48 PoE+ ports) with 4 SFP+
$74.00
JUNIPER EX3400-48P 48x 1GB PoE+ RJ-45 4x 10GB SFP+ 2x 40GB QSFP+, DUAL AC POWER
$168.00
Juniper Networks EX2300-C-12T Compact 12-Port EX2300-C Series Ethernet Switch
$300.00
Juniper EX4200-48PX 48-PORT 10/100/1000BASET PoE Ethernet Switch
$50.00
Juniper 48-Port GbE 8-Port PoE & 4-Port SFP Managed Network Switch EX4200-48T
$31.19
Juniper EX2200-C-12P-2G 12-Port PoE+ Compact Managed Switch
$69.99
Juniper Networks EX3400-48T 48 Port Gigabit 4 SFP 1/10G Network Switch #73
$199.99
Juniper EX4300-48P 48 Port PoE Gigabit Network Switch - COMES WITH DUAL POWER
$179.99