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This isn't really an rsync question but...
No, moving a file to .Trash does not free space. As far as the file
system is concerned this is just another directory and the file is not
actually deleted yet.
As far as compression goes, you have 2 choice
I don't have the technical knowledge to bring this idea into the real world
but:
What do you think about adding a tar/zip option? I like to rsync my
/Documents directory and as i was doing so this morning my pen drive ran
out of room. I only ever make minor changes to /Documents and sometimes I
for
