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why not keep lz4 as well, shouldn't it have the smallest performance hit compared to those two?

This can't be answered with a simple yes/no without benchmarking this specific use case on specific hardware.

For other use cases I've personally never really found lz4 very useful (neither gzip). Usually zstd on either low/medium can be both faster (or at least, fast enough) and better compressed.

Game developers use LZ4 a lot, like a lot. It's fast on both ends.

Booting only requires decompression which mighty explain why LZ4 doesn't shine there.

lz4 is pretty awesome for ZFS compression. It has nearly no impact on read/write and writing/reading data is sometimes even faster than without compression.

Though I use zstd on zfs datasets which I rarely read/write to i.e. backups.

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