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to clarify: my idea is the reuse the current Normalize tool page and just add an "Compress" option, like so:

[ x ] Normalize

[ x ] Percentage: [0..150%] - this is the param_percent in the formulas above = (100.0 / compress);
[ x ] Value: [0..127] - this is param_value or will be the target value if Compress is turned on;
[ x ] Compress - this will switch to compressed_value (new) formula instead of normalized_value (old).

this way there won't be a need to brand new page of entry fields, just an additional checkbox to an existing tool page.

cheers