Incorrect. It's not the "compression to 1" that causes lag, but the "Vanilla" target search when taking damage and there's no suitable target nearby.
This is especially noticeable if you try to set a crowd of Biters on fire with a flamethrower, far from the base.
Or, for example, in the editor, set a tree on fire and place a bunch of biters nearby. There will be severe lag even without mods.
Unfortunately, there's nothing that can be done. Target acquisition every time damage is a built-in mechanic in Factorio. The only way to combat this is to make it unprofitable to fire at Biters with artillery, so players avoid it. Which is what I am gradually doing - the use of artillery is associated with many risks.