Urgh, I hate it when people get facts wrong... Sound compression has nothing to do with the space on the CD. You're confusing sound compression with file compression, two totally different things. And again MP3 has NOTHING to do with dynamics on sound compression. I suggest you learn about what you're talking about before trying to teach anyone.
http://en.wikipedia.org/wiki/Dynamic_range_compression
http://en.wikipedia.org/wiki/File_compression
And read about the loudness wars, the link i posted previously.
And no, vinyl doesn't have more frequency range than a CD, it has less. And again, compression in the mixing or mastering stage has an effect on whatever medium you master to. It's a decision of the guy doing the mastering and the artist to decide how much dynamics they leave in and how much they want to compress the soundwave. On vinyl you have much less dynamics to play with, so you do it differently. On CD you can make everything punchy, so many opt that. So, in short, you're wrong on all accounts.
Listen to this interview from about 55:20 onwards. It's a guy who's done mastering for albums since the 70's (including Metallica's Black Album) and is teaching mastering in NYU and Juillard. Listen to what he says about vinyl.
http://youtu.be/6mx-nouwouk
Ice