0.2x of the original size would certainly make big documents more accessible. I've heard of succinct storage, but not in the context of xml before, thanks for sharing!
I suspect with the right FM-Index Xoz might be able to store huge documents in a smaller size than the original, but that's an experiment for the future.
With modern SSDs and disk cache, that's likely enough to be plenty performant without having to store the whole document in memory at once.