If anybody want to try to compress tangent space normals with DXT5, then try this:
Put X in the R, G and B channel of a R8G8B8A8 texture, and put Y in the alpha channel.
Compress it with a standard DXT5 compressor.
In the pixel shader, swizzle G to X, and A to Y.
Precision beyond 8 bit in the Y channel will be lost even though it could be possible to keep it with a specialized compressor.
Put X in the R, G and B channel of a R8G8B8A8 texture, and put Y in the alpha channel.
Compress it with a standard DXT5 compressor.
In the pixel shader, swizzle G to X, and A to Y.
Precision beyond 8 bit in the Y channel will be lost even though it could be possible to keep it with a specialized compressor.