Windows 11 users can now manage RAR archives natively, with no need for third-party software or questionable archive "unpackers." Windows 11 22H2, the past year's last major...
Windows 11 adds native support for RAR, 7-Zip, Tar and other archive formats thanks to open-source library::undefined
Zip has a worse compression ratio than 7z, and that's a disadvantage for the average user (for example, a user with an email attachment size limit that they need to stay under).
If Windows natively supports one of the better alternatives, there's no reason to keep using zip. It's a 30 year old format, and it's something that regular users will happily just go with whatever's default.
I ran benchmarks for syslog compression/decompression, and ended up using plzip, which used lzma, just because it was the fastest decompression while still having only marginally worse ratio.
For me .zip on Windows is equivalent to .tar.gz on Linux - used when I just want to send a folder in a single file very quickly.
Also handy when sending an archive to a weaker machine, that might take a while to unpack a 7z compressed at the highest setting.
.7z is when I want to send a folder encrypted, or heavily compress something to archive (like a database, documents folder, or disk image/iso). It seemingly does the impossible, shaving the size from say 60GB down to 40GB compressed if you use solid mode (which has downsides if there are multiple files in the archive). It's incredibly flexible, but the defaults are pretty solid for most cases
7z files can be browsed without decompressing the contents, and tar.xyz archives preserve file system attributes like ownership. They have totally different use cases.
If I want to back up a directory on my drive, I would use tar.xz. But if I want to send some documents to other people, I would use 7z.
.7z and .xz are (essentially) the same compression algorithm but it's applied either to the whole chunk of data, or to individual files. That has its pros and cons.
More practically though windows users don't know what the hell tarballs are, and I've even seen some bonkers handling like turning a tar.gz into a tar first that you then have to unpack.