But if you can choose to lose information you can obviously achieve a higher compression score. That's literally what optical & auditory compression exploits. Indeed, we know people generally don't memorize the entire Wikipedia article. Rather they convert what they learn into some internally consistent story that they can then recite at any time & each time they recite it it's even differently worded (maybe memorizing some facts that help solidify the story).

Again, I have no problem with compression and decompression being equated to intelligence provided both are allowed to be lossy (or at least one facet of intelligence). That's because you get to inject structure into the stored representation that may not otherwise exist in the original data and you get to choose how to hydrate that representation. That's why LZMA isn't "more intelligent" than ZIP - the algorithm itself is "smarter" at compression but you're not getting to AGI by working on a better LZMA.

It's also why H264 and MP3 aren't intelligent either. While compression is lossy decompression is deterministic. That's why we can characterize LLMs as "more intelligent" than LZMA even though LZMA compresses losslessly better than LLMs.