> bzip2 and xz are extremely slow to compress

This depends on the setting. At setting -19 (not even using --long or other tuning), Zstd is 10x slower to compress than bzip2, and 20x slower than xz, and it still gets a worse compression ratio for anything that vaguely looks like text!

But I agree if you look at the decompression side of things. Bzip2 and xz are just no competition for zstd or the gzip family (but then gzip and friends have worse ratios again, so we're left with zstd). Overall I agree with your point ("just use zstd") but not for the fast compression speed, if you care somewhat about ratios at least