The other use case is to distribute images more quickly over the network and improve image pull times, at the expense of slightly more memory use.
Similar to how saving disk is less useful to most people these days, RAM on servers in big docker/kubernetes clusters is also likely not much of a concern for binaries that are well under 100MB if you're not running a ton of copies on each server. In particular, it seems like this tradeoff is most useful for static go binaries, which don't benefit from shared system libraries and aren't likely to have many copies per server, but of course that definitely depends on the use case and I definitely do not recommend blindly using UPX without considering the tradeoffs.
It would be an amazing integration though if it were possible to integrate UPX with docker's layer compression such that the binary is extracted to the FS before running. But given how it all works, that's pretty challenging to implement and the network is only getting faster...