Lowering compression does not necessarily increase fuel economy. In the 70's, two things happened simultaneously that resulted in the change in compression ratio and fuel economy.
I think the primary reason that the compression ratios were reduced was due to a chief environmental concern of the time. High compression engines required high octane fuel. A chief anti-knock additive was a lead additive. Starting in the 60's I seem to remember lead being removed from paints etc in an effort to reduce our lead exposure which has a cumulative effect on the body. Lead was being reduced in the fuels, and the current fuel technology did not have alternatives to replace the lead additives. So, the high compression engine was being killed. This was just a part of the overall push to reduce automobile related smog emissions in the cities.
The other push that happened to nearly coincide with the decrease in compression ratios was the oil-embargo. The embargo accelerated a push for fuel economy. But by the time the of the oil embargo, the push for reduced emissions was already killing off most high compression engines. Fuel conservation was championed, and a nice side benefit was the fact that better fuel economy yields less pollution. Nobody "needed" a 400+ HP big block car when you could not get the fuel for it anyway.
At the time, hi compression engines typically had poor idle emissions due to valve timing that was optimized at higher rpm ranges. So decreasing the compression ratio could reduce idle emissions which are a significant portion of the total emissions. The other obvious way to reduce emissions was to increase fuel economy. Limiting the horsepower that the engine could develop was a way to meet emission and fuel economy standards.
As mentioned, high compression does not necessarily imply lower fuel economy. And as Ol Boy pointed out, the technology has changed where we can run variable valve timing etc to increase performance and reduce emissions. .
Doug