verified that. If you are talking about the file system embedded in the the squashfs image, there is little point to that. If I was to work on that aspect, I'd work on making things just use squashfs natively as there is now xattr support on squashfs. (And I belive ways to have device nodes.)
I'm wondering about making it work in squashfs so that users like me can create Fedora LiveCD/USB Remix could be installed (copied) on SSD drives. As LiveCD install only copies image I would like to have BRTFS image what would be copied to netbook's ssd with enabled compression and sdd option for BTRFS.
Is it possible to do that?