Right, but then they quote someone saying that the video game version is better because of "digital domain compression", followed by a statement that "Digital compression is the process that allows a song to go from being a very big sound file in its natural state to a very small file in your iPod"

They are still talking about dynamic compression there. The music went through a different mastering process for the CD than for the game, and the game version was left with more dynamic range. His use of the phrase "digital domain compression" is misleading here, as it refers to dynamic compression performed in the digital domain.

Which is why I said it's confused.