I haven't read the whole article yet, but gzip and bzip2 recover fairly well from errors. As they are divided into blocks, flipping a bit will make you lose, at most, one block. This is not related to error correction though, but a way of mitigating losses.

>> Just one bit flip in the msb of any byte causes the remaining records to be read incorrectly. It also causes the size of the index to be calculated incorrectly, losing the position of the CRC32 and the stream footer.

This sounds severe enough to me.