Even then, there were better options in the Windows world (RAR/ACE/etc.). Also, bzip2 was considered slow even when it was new.
You can bzip2 -9 files in some source code directory and tar these .bz2 files. This would be more or less equivalent to creating ZIP archive with BWT compression method. Then you can compare result with tar-ing the same source directory and bzip2 -9 the resulting .tar.
Then you can compare.
The continuous mode in RAR was something back then, exactly because RAR had long LZ77 window and compressed files as continuous stream.
'Solid compression' (as WinRAR calls it) is still optional with RAR. I recall the default is 'off'. At the time, that mode was still pretty good compared to bzip2.