Many have asked for compressed iso's.
e-smith iso's have been smaller (uncompressed) than full-sized 'vanilla' Linux distro's, so it's not such a big deal for mirror sites (if it is, other, larger mirrors
will do the job instead).
With all due respect, when a group begins to stop hearing/listening to what its users - with all their foibles - say they want... well, let;s just say: it's not a good sign of what could be just around the corner...
The cost of a few hundred megabytes of storage is trivial... others have made good arguments for compression
If keeping them in the same directory as the uncompressed iso's confuses some, then -either- add messages to each directory (telling them to take the one they like, not both) and refer any questioners with confusion to them.
Don't condemn everybody to a choice of rsync -or- larger iso's
Open Source is about giving people more choices... -and- about giving people what they want... not what a company might - in its wisdom (or otherwise) might like to give them...

If -your- server space is in short supply, so remove 3.1 or 4.0 and sneak a compressed 4.1.1 into a separate folder...
Go ahead... make us even happier!

Simple, eh?