25% of the original size is decent, but still presents a size problem, especially for downloadable games. 300MB of sound compressed to 75MB is good, but might still be too big for downloading. This link: http://grahammitchell.com/writings/vorbis_intro.html claims compression ratios with ogg format of 5% of original size are possible, but even 10% would be great.
I think the solution to the sound issue is to provide the ability to have direct access to sound buffers. That way ANYONE could write the code to decode an ogg file or wma file or a zipped wav file for that matter and stuff it into the sound buffer appropriately. The sound could be streamed in from a file or memory easily once the sound buffer API was available.
It would also be a bonus if the XNA team implemented the sound buffer code to decode ogg and/or wma, but even if they didn't at least the community could eventually write it.
Either way, I think having a second option besides XACT would be a big plus. Right now I use irrKlang for my windows sound API, and for XBOX I still use XACT. My CPU usage percent maybe increased by a percent or two when playing an ogg file from disk with irrKlang... Managing the code for two sound API's is a small chore, but the real time consumer is managing two sets of content.
Even if the only thing the XNA team provided in the API was the ability to play a WAV file from a stream, that might be sufficient short term, because the game could zip it's content, and then unzip it at install time.
Finally, I know the XNA team has been working hard to get lots of cool features into the product, which we all sure do appreciate, however I know this is one of the top connect issues, so here's hoping it gets high (or top) priority starting in 2008.