[popcornmix]

From my really quick test it looks like using LZ4 compression offers faster compression speeds but a lower compression ratio than LZO. I would rather have speed and performance over trying to squeeze as much into ram as I could.

One thing I might play around with later is the swappiness value. From what I understand, it's set low so not to swap as often to a physical swapfile to save on sd writes but that would not be a problem using Zram as the swap is contained entirely in ram so we can read/write as much as we want.

There's some interesting information here about running on 256M Pi, including increasing swappiness (some reports that making it 60 or even 100 is beneficial, even with sdcard as the swap media)
http://forum.stmlabs.com/showthread.php?tid=14738

It would be good if you can prove that zram is beneficial. e.g. find some use cases (like time to start streaming from an internet stream, or time to open movies library) that is improved by enabling zram. It's hard to do anything with subjective reports like it "seems faster".
That will be useful evidence to help get this enabled in openelec officially.