For the corpus of things I've dealt with recently, the difference is a lot more than 0.8% in size. As much as the difference between an entire compressed virtual machine (copy of a set of LVM logical volumes that have been copied with dd and compressed) being 4.2GB vs 5.15GB in size.
If it might take ten hours to transfer 900MB in some unusual environments, that's a big savings.
Also there is a degree of asymmetry, in that it's not so difficult for the system creating the xzip archive to have a lot of CPU (four CPU cores out of 12 or 16 on a dual socket current generation xeon system, or a threadripper). Since xzip is much more time consuming to create than to extract.
Or for any other environment where WAN connectivity is extremely limited in throughput.