You mean data compression if you are referring to disc size, right?
There's the max size of the disc.
There are the recognized formats for existing playback devices. (Many of them being 2 audio channels. Hence the creative encoding schemes to use those.)
And there is the max data rate that can be read off the disc. Data compression is required to comply with this as well as disc size.
There are lossless encoding schemes too. DTS-MA is 1:1 with the raw original multi channel file, for one example.
Encoded isn't just synonymous with lossy.
It sounds like a great idea to me. Quite simply...
The only thing better than some number of channels in your system is more channels!
I'm just disappointed that there's an element of greed running wild with trying to force hardware sales with this at its introduction. Want another dead format? Actively preventing people from listening to it unless they duplicate a healthy chunk of their system over again is a good way to do that!