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.
Dell SNPTP9W1C/16G 16 GB 2666MHz (PC4-2666) Memory Ram
$34.95
Micron 8GB DDR4 1Rx16 PC4-3200AA Laptop RAM Memory MTA4ATF1G64HZ-3G2E2
$10.00
A-Tech 8GB DDR3 1600 PC3-12800 Laptop SODIMM 204-Pin Memory RAM PC3L DDR3L 1x 8G
$13.99
Team T-FORCE VULCAN Z 32GB (2 x 16GB) PC RAM DDR4 3200 (PC4 25600) Memory
$54.99
Crucial DDR3L 16GB 1600 2x 8GB PC3-12800 Laptop SODIMM Memory RAM PC3 16G DDR3
$22.45
HyperX FURY DDR3 8GB 16GB 32GB 1600 MHz PC3-12800 Desktop RAM Memory DIMM 240pin
$15.90
BULK LOT OF 10x UNITS of 8GB DDR3 Desktop RAM SAMSUNG, HYNIX etc. (10x)
$59.99
8GB PC3L-12800S 1600MHz SODIMM DDR3 RAM | Grade A
$12.00
SK Hynix 64GB (4x16GB) DDR4 2666 MHz PC4-21300 DIMM RAM Kit - HMA82GU6JJR8N-VK
$89.99
64GB (4X 16GB) DDR3-1333 PC3-10600 Memory RAM for APPLE MAC PRO 5,1 Westmere
$49.99