I think you're missing the point here. 100:1 image compression is already possible right now. 100:1 lossless compression is very possible. But only in very specific conditions. There are fundamentally only two ways 100:1 lossless compression will *ever* be possible -- 1 ) you have a recognizable pattern of some sort or size that repeats itself at least 100 times. Or 2 ) you have patterns that may not necessarily repeat, but can be exactly reproduced procedurally and therefore, you only need to store information about the procedure to use and the parameters.
In the *general* case, it will never be possible simply because information won't always be structured so conveniently. You can pretty much guarantee that it won't. It has nothing to do with how powerful a CPU is -- it's simply a matter of the entropy of the information stream. Now there may be a day when lossy compressors start using basis functions that are so disgustingly complex that we can edge out the quality for a given compression ratio compared to what was achievable in years past. But even then, you can't just say that 100:1 with little quality loss will ever really happen. Maybe on a video stream that shows a single picture without moving, but again, that's a unique case.
That still has nothing to do with it. It doesn't matter that CELL can compress MJPEG video streams very quickly because the GPU still has to be able to *decompress* it quickly if you want to use it as a texture. The point of S3TC is that it's natively supported in hardware by the GPU, so there's no extra cost associated with it. Even if you store it on disc in a heavily compressed format, you will still have to decompress it (and if you like, re-encode it to S3TC), in order for it to be usable as a texture, and so in terms of how much memory is utilized, you've gained nothing.
When GPUs decode JPEG or wavelet-compressed images for very little cost (whether that be in hardware or through an explosion in ability to process more shader ops quickly), then we'll talk. But until then, the CPU's ability to compress images quickly is not going to help anything as far as getting more stuff on the screen at once.