Perhaps not compression as we see it today. But one could argue that tile based graphics and code based music is a form of compression. Old games used a myriad of cool tricks to get around their limitations.
Modern coders will probably never experience the fun of rewriting the same thing endlessly only to discover how good some early version really was. Then some time after giving up someone else would make a similar thing go 20 times faster.
I should have worded that better, I meant no UPX-style end-to-end compression like the OPs project used. NES games had to be much more judicious than that since there wasn't nearly enough RAM to decompress everything at once.
That honestly doesn't seem too bad. Zelda 1 is relatively large but it reuses a lot of assets and honestly probably doesn't have that much text. (More than a Mario but way less than a Dragon Warrior.)
AFAIR tho im not sure its even 128k, I think disk cards themselves are more like 110k and even then FDS Zelda had separate sides mostly for main menu and saves.