Consider deprecating old handlers API

**Feature request**
It would be great to have compression for services.

**Use case**
Many users need this functionality for production deployments.

**Implementation idea**
Add a new config option `enable_compression` with default `false`.

The issue names no files, tests, or entry points. Start by locating the service configuration and existing handlers API, then check how service deployments handle related options; done means services support compression through enable_compression, which defaults to false, with coverage for the new behavior.

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