If you rotate a straight line by 45 degrees, there will be deleted pixels. A horizontal line of 100 pixels will consist of ~70 pixels (100 * sqrt(2) / 0.5) after such rotation.
This seems incorrect. It sounds like you are saying that you can store any 100 random values into 70 values. Or 100 bits of information in to 70 bits.
If you could, what would stop you from then storing that 70 bits in 49 bits, then that 49 in ~34 bits, etc and therefor have infinite information storage?