Bzip2 is great for files that are compressed once, get decompressed many times, and the size is important. A good example is a software release.
Huh? Only if it gets decompressed few times I would say, because it's so extremely slow at it
Like a software installation that you do one time. I'd not even want it for updates if I need to update large data files. The only purpose I'd see is the first-time install where users are okay waiting a while, and small code patches that are distributed to a lot of people
(Or indeed if size is important, but then again bzip2 only shines if it's text-like. I don't really find this niche knowledge for a few % optimization worth teaching tbh. Better teach general principles so people can find a fitting solution if they ever find themselves under specific constraints like OP)
So is xz, or zstd, and the files are smaller. bzip2 disappeared from software releases when xz was widely available. gzip often remains, as the most compatible option, the FAT32 of compression algorithms.