The .mobi file that I sent to Amazon for conversion (via Kindle email) was compiled by me with no options on the KindleGen command line. I assume that's actually the -c1 (standard DOC compression) option because I tried -c1 later and it created the same-sized .mobi file as with no option specified.
The .mobi file I sent Amazon was 977KB and it came back in .azw format at 464KB. Happy experimenting!
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