I haven't read the paper.
But I very much doubt they do DXT1 compression in the runtime.
Personally I'd compress the compressed textures, if their compression is lossy I'd just live with whatever format I processed for the compression.
Decompression is usually comparably expensive to a memory copy, the bulk of the cost is usually cache misses.
A lot of games compress all assets on disc and decompress them on read, because it's faster.
But I very much doubt they do DXT1 compression in the runtime.
Personally I'd compress the compressed textures, if their compression is lossy I'd just live with whatever format I processed for the compression.
Decompression is usually comparably expensive to a memory copy, the bulk of the cost is usually cache misses.
A lot of games compress all assets on disc and decompress them on read, because it's faster.