If you select the option to leave your format alone, it won't strip out all the white space.
I was a bit flattered by it -- most of the changes it made were just stripping out comments, which I'd rather leave in there anyway.
I think that this is a pretty cool thing, but I wonder -- short of huge, huge, huge stylesheets -- or stylesheets intended for really slow machines/connections, does this really save enough bytes to make it worth the clicks it takes to do it?
I'd written an optimizer of sorts the focussed less on size and more on combinging elements that shared the same attributes, so as to have as few lines to edit as possible. Too bad that system bit the dust, too lazy to re-write it:)