When I was young I had this idea that any hard drive can be compressed into 100 bytes. The compressed data is a 4 dimensional vector, a component of the vector is a 25 byte floating point number, and represent the space-time coordinates of the hard drive. (For example my hard drive in 1994 marc 3 23:00:45.456 at a specific place in Budapest) The extractor algorithm just have to simulate the universe from the big bang…
One drawback (on top of astronomically slow extraction time...), is that this still requires us to go ahead and actually write the data in uncompressed form onto a hard drive somewhere. So storage space is still taken up at some point in the world, but at least we can erase and reuse that space as soon as we like, and transmit the data elsewhere with minuscule bandwidth.
Of course, all this really amounts to "Any data you are actually interested in presumably has a short description (e.g., something like 'A complete audio and video recording of every occurrence in Eurasia over the 10,000 years beginning with 6000 BC') and thus, in perfectly compressed form, you will never have any need for large numbers of bits". Or, put another way, "There can't be more than [some reasonably finite number] pieces of data you will ever actually be interested in in your very finite life, so as far as you're concerned, log_2([said number]) bits suffices for everything".