It sounds plausible to me. Real-world constraints aren't usually "you can use any amount of resources on the compressor, and any amount of compute on the decompressor for free, but the decompressor is hardcapped at exactly X MB of memory". So you might only have a theoretical improvement on existing methods, but that would still be very cool.

You can't beat existing methods by much - we're pretty close to the Shannon limit - but it's not a closed subject.