This isn't strictly better to me. It captures some intuitions about how a neural network ends up encoding its inputs over time in a 'lossy' way (doesn't store previous input states in an explicit form). Maybe saying 'probabilistic compression/decompression' makes it a bit more accurate? I do not really think it connects to your 'synthesize' claim at the very end to call it compression/decompression, but I am curious if you had a specific reason to use the term.

No, this describes the common understanding of LLMs and adds little to just calling it AI. The search is the more accurate model when considering their actual capabilities and understanding weaknesses. “Lossy compression of human knowledge” is marketing.

“Novel” to the person who has not consumed the training data. Otherwise, just training data combined in highly probable ways.

Not quite autocomplete but not intelligence either.

Information Retrieval followed by Summarization is how I view it.