|I think Obsolete you are getting yourself totally confused.|
Compression in NTFS is optional. You can tell when a file is compressed as it appear in Windows Explorer with a different colour, blue by default. The only files that a compressed automatically are the update files that are downloaded via Microsofts Update site.
Using FAT32 and NTFS in the same system is not a problem, not in the least. People do it all the time. There is absolutely no reason at all why you cannot mix them.
Supporting a file system and creating it are two different things. All version of Windows after Windows 95 support FAT32 greater than 32 Gbs, Creating it via format is a different thing altogether.
MS-DOS is a 16 bit operating system and therefore can only use FAT 16 which is restricted to 2 Gbs.
DOS 7 and Win98 DOS are enhanced version to support 32 bit operating system like Windows 98
If you formated FAT 32 greater than 32Gbs then you used a third party tool as I mentioned in post #3. You have admitted not using Microsoft format becasue if you did you would know all about the 32 Gb limit.
As mentioned by Ijack, NTFS has so much going for it, it is silly not to use. That is if you understand what a journaled file system is. That alone put NTFS head and shoulders above FAT32. With all the other attributes , FAT32 barley comes up to the ankles. 1970s technology v 1990s technology.
To add: Reading the description of ExFAT it appears it is just another kludge to accommodate specific circumstances. Unless those circumstances arise there is no benefit in using it.