It is very well known that TIFF, PDF, and PostScript since Level 2 support ZIP, etc. This has no relevance to PSD, of course. TIFF was NOT originally developed by Adobe (some of us can remember life before Adobe), but through acquisitions they are now its nominal "owner".
> you will see that the ZIP compression option dates back to days of PS 3.0!
I have no idea what you mean by that. It was not even mentioned until Release 2 of the V6 document, and even then, nobody is even sure if CS2 can generate ZIP compressed PSD. There is one very important reason why it would not arbitrarily choose compression types in the way you suggest: Doing so would unpredictably make files incompatible with older Photoshop versions (you may believe PS3.0 decompresses ZIP, but I don't for a moment).
As I said above, however, it is quite possible that PSB uses ZIP, even adaptively as you suggest. However the document does not even discuss whether this is true; discussion of ZIP is limited to about five words.
This is by no means "documentation"; it's merely "mentioning". The File Formats document is one of the most incomplete and poorly expressed specs I've ever seen, as is soon discovered by anyone, like the original poster, or myself, who tries to use it to write working code. Some of the typos were fixed in the CS version, but none of the serious flaws and omissions.
Public domain? It's not my site. Anyone can find those links on Google.