Iirc it was Bzip2 that bumped that up to 1MB, and there are now compressors with larger windows - but files have also grown, it’s not a solved problem for compression utilities.
It is solved for backup - but, reatic, and a few others will do that across a backup set with no “window size” limit.
…. And all of that is only true for lossless, which does not include images or video.