I installed this hack, and my site is small, but I would think that doing a preg_replace on every page load would be a waste of CPU if your site was heavily loaded.
I think a more important hack or plugin would be to do the following:
- Catch and eliminate wasted whitespace on post creation instead of on display
- Catch wasted white space in templates on creation instead of on display
- Maintenence items to go clean up white space in old posts and templates (run once)
This way you get the CPU hit only on posting, the size of the posts in the database goes down a little bit, which further reduces load on the DB server.