Tom's Hardware Guide will distribute AVI's in ZIP form. They do save some space, but really not a lot. Actually, if they'd RAR them, they'd save a bit more space.
Less chance of corrupt file? I think
RAR does allow for a recovery record, which can let you rebuild data in the event of file damage.
Overall, I think that RAR is superior to ZIP.
Good compression is used where it has some benefit. If you're doing it to save 100KB on a 200MB file, then it's a waste of time to compress and decompress. If reducing a 10MB file by 500KB, it might be worth it then, especially if many thousands of people are going to be downloading that file - that could potentially be gigabytes of bandwidth.
Just use the right compression for the job.
- MP3 for audio if size is a concern. FLAC if quality is a concern.
- JPG for images if size is a concern, PNG if quality is a concern.
- PNG also works great for simple screenshots, often giving GIF-sized files without reducing the number of colors.
- XviD for video, especially if 2-pass mode is used.