People have posted in the past the manual way to avoid the compression service by changing the apn username to Bypass.
Is it not time for the user to be aware of this compression (pictures and videos from memory) and be able to make an informed choice to remove it via MY O2 or for O2 to remove it completely like other networks.
It has been blamed for various issues on this community.
With larger data packages available now the user should have information readily available about the pros and con's of the compression proxy and be able to opt out easily.
One thing that concerns me is this KFI makes no reference to the compression proxy as far as i can tell http://www.o2.co.uk/assets2/Kana/pdf/traffic_management.pdf