Z7's Resolution vs. Compression - Which is better?

It all depends what you aim to achieve, quality or small file size.

Best quality is achieved by shooting in RAW, lossless compressed file is as good as uncompressed one. Tom Hogan advises, from memory, that shooting above ISO 400 12bit is adequate, otherwise 14bit is my default at any ISO.

In terms of JPG as you go down the scale of size and compression (fine, normal and basic) you discard data. File size gets smaller but than what is the point of having the camera with top class sensor if you are going to shoot in small size basic jpg.

If you look at camera manual it explains all of the above, it is your choice how you wish to use the camera. I doubt anyone made such comparison for some time now as answer is pretty obvious.

 

Not a test I have ever done or seen that I can recall. Sounds like you need to set up a tripod and run a test. There are six different JPEG Image Quality settings (Fine*, Fine, Normal*, Normal, Basic*, Basic) and then you have three JPEG Image Sizes you can select (Large, Medium, Small).

18 shots and you can see what quality and size combo will work for you needs.