Why not have a deferred compressor? I assume that just straight-up saving the raw data in memory would be much faster than compressing every frame as you get it. Couldn't you get significant FPS increases (given that you still had free space/memory available)?
Actually, I do both on dual core devices. One core is dedicated to host the capture/buffer, the other will encode shots in the background. When you see the big circle percent animation, both cores are dedicated to compression to clear the encoder queue so you can take back to back living photos quickly.
This is one of the main reasons I keep coming back to HN. A story gets posted about some cool new tech, and the creator is in the comments answering questions. Simply awesome.