The algorithm requires that you compare the current iteration to the source image, how does that constitute good compression? Not to mention the final image required 904314 generations to reach it.
When compressing, you always are using the source image in some sense.
What you end up with could be a fairly minimal way to represent the image.
Though yes, clearly, the amount of processing required to reach that compression is absurd. But then, most ultra-efficient compression algorithms have this problem at least initially.
