Compact / succinct data structures and clever algorithms are still very important when data gets large enough -- consider e.g. a database running complex queries, where a good encoding makes the difference between staying in memory and going to disk. Basically the machines became larger but so have the problems to solve.

Yes but this is far beyond compact, it's squeezing in so close to the edge of what fits that the performance inevitably drops off a cliff.

But there are for instance modern embedded systems which might be very resource constrained and knowledge like this would be useful there.