Your apt update would still be huge though. When the dependency changes (eg. a security update) you’d be downloading rebuilds of 20 apps. For the update of a key library, you’d be downloading your entire distribution again. Every time.
One of the very first consumer hardware to support dynamic linking was the Amiga, with its Libraries and DataTypes.
We moved away from having a full blown OS done with static linking, with exception of embedded deployments and firmware, for many reasons.
"compression is insanely effective" - And what about energy? compression will increase CPU use. It will also make everything slower - slower than just plain deduplication. Also, your reason for using worse for user tech is: the user can mitigate in other ways? This strikes me as the same logic as "we don't need to optimize our program/game, users will just buy better hardware" or just plain throwing cost to user - this is not valid solution just downplaying of the argument.