this is also the insight that the bwa developer had, to use the burrows-wheeler transform which is part of bzip2 due to it's compression properties being particularly good for genomic sequences.

I once had the distinct pleasure of hosting the author of BWA (R. Durbin) at Google, and pointing out "That's Mike Burrows, over there, next to Jeff Dean and Sanjay Ghemawat". That led to an interesting discussion between Durbin and Dean on DNA sequence compression. It's not the first time I've been in a room with a bunch of geniuses and simply kept my mouth shut so nobody would know I'm an idiot.