Decoupling tape formats from file format effectively resolves the issue, that is: read the tape in 6k blocks, write the file to a modern file system. Set the tape block size to 10mb. Write the file back to tape as a tar. You get the bandwidth limit of the tape drive.
The issue is almost all legacy industry software is still designed to read and write directly to tape objects so your tape isn't readable in all the software this data is designed for.
The newer media is typically on a new very fast tape drive and sometimes it is difficult to saturate those anyway and keep stopping and starting and having to reposition over and over.
I get that a better format would make it easier, but it seems like you should be able to, with some optimization or disk cache, stream the output fast enough to outpace the tape drive.
Edit: Hrm. I believe you can disable hardware compression on some LTO drives. Maybe that would help?
There have been multiple attempts over the years to implement all sorts of algorithms but they have all failed to gain traction. For example Wavelet based compression works fantastically well for some data (i.e. real signals with band limited frequencies), and catastrophically badly for others (earth models defined with piecewise functions containing non-differentiable points). Some people are happy with lossy compression, others are not.
The only compression I have seen worth anything is in deep water, where there is literally no data in the water column (i.e. 500 consecutive zeroes in a 6000 byte block), gzip gives you the that section free.