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.
LOT OF 20 Genuine Cisco SFP-10G-SR V03 10GBASE-SR SFP+ Transceiver Module
$95.00
New Precision DWDM SFP+ 10G 80km Tunable Transceiver 50GHz C-Temp DWDM-SFP10G-C
$90.00
LOT OF 4 CISCO SFP-10G-SR V03 10GBASE-SR SFP+ TRANS MODULE 10-2415-03 H2-3(8)
$32.94
ProLabs 10GBase-TX SFP+ RJ-45 Copper Transceiver Module P/N: SFP-10GBASE-T-C NEW
$34.99
Original CISCO SFP-10G-SR V03 10-2415-03 850nm 10GBASE-SR SFP+ Multi mode Module
$6.80
Brand New Cisco GLC-LH-SMD 1000BASE-LX/LH SFP Module 1310nm 10km SMF LC
$10.99
Lot of 10 - HP 10Gb SR SFP+ Transceiver 455883-B21 455885-001 456096-001 850nm
$25.99
Mellanox Original MFM1T02A-SR 10GbE 10GBASE-SR SFP+ Transceiver
$9.00
Cisco Nexus 96-Port 10G SFP+ Switch N9K-93128TX w/ 9K-M12PQ 12-Port 40G QSFP
$149.99
CVR-QSFP-SFP10G Cisco 40G QSFP+ to 10G SFP+ Adapter Modules 74-9474-02 V01 V02
$74.99