ncompress is required to run the hldsupdatetool.bin. From that you get the steam executable. Most linux systems have ncompress installed already, but some don't. This has nothing to do with this error however.
The problem is the content server is corrupt in some way. Either in the data is has, or in the process files are handed out. The reason deleting the blob files *sometimes* works is the content server the steam binary chose to use on first run is stored in there. When the ClientRegistry.blob file is removed the steam binary starts all over and chooses whatever content server it thinks best suites you, which may be different than the one giving you these bad files.
-verify_all will not work because the issue is with the content server.
ripping the files with gfscape or getting them from another server already updated would temporarily solve the problem too.
Now here's what you want to do. . . .
Run this:
./steam -command ticketexplorer
This will output a page and a half of info. Copy that info along with the line showing what file the compression failure occured on and email alfred@valvesoftware.com directly with this info.
Note: Alfreds email is publicly available, but don't be silly and just start sending him questions. This information however I know he will want to see. I had the same problem and he pulled the offending content server offline.