UPDATE Feb 10 2012:
zOompf has completed some very thorough research on this very topic here. It trumps any findings below.
UPDATE Sept 11 2010:
A testing platform has been created for this here
HTTP 1.1 definitions of GZIP and DEFLATE (zlib) for some background information:
" 'Gzip' is the gzip format, and 'deflate' is the zlib format. They should probably have called the second one 'zlib' instead to avoid confusion with the raw deflate compressed data format. While the HTTP 1.1 RFC 2616 correctly points to the zlib specification in RFC 1950 for the 'deflate' transfer encoding, there have been reports of servers and browsers that incorrectly produce or expect raw deflate data per the deflate specification in RFC 1951, most notably Microsoft products. So even though the 'deflate' transfer encoding using the zlib format would be the more efficient approach (and in fact exactly what the zlib format was designed for), using the 'gzip' transfer encoding is probably more reliable due to an unfortunate choice of name on the part of the HTTP 1.1 authors." (source: http://www.gzip.org/zlib/zlib_faq.html)
So, my question: if I send RAW deflate data with NO zlib wrapper (or gzip, for that matter) are there any modern browsers (e.g., IE6 and up, FF, Chrome, Safari, etc) that can NOT understand the raw deflate compressed data (assuming HTTP request header "Accept-Encoding" contains "deflate")?
Deflate data will ALWAYS be a few bytes smaller than GZIP.
If all these browsers can successfully decode the data, what downsides are there to sending RAW deflate instead of zlib?