The docs at http://dev.day.com/docs/en/cq/current/deploying/dispatcher.html mentions that the Dispatcher places the cached documents in the document root of the web server.
Is there a way to store them in memory - like say for example in memcached ?
AFAIK both mod_deflate, FileETag applies compression, creation of etag before being sent to client for static (Cached) files.
You might need to explore for such option at apache levels like mod_file_cache ... But dispatched does not provide such option.