I think it will continue to compress, simply because of the system I use. Teams' performances are judged based on the history of their opponents. It's easier to climb farther against good teams or fall farther against bad teams... if that makes any sense.
For example, if the Saints beat the Rams 31-10... their power ratings will probably stay about the same, because it's "what's expected". Any closer of a finish, like the last time those two teams played, and there will be a decrease in the range between #1 and #32.
Green Bay dropped to 18 or 19 or something after losing to TB, and it's taken 3 wins (and some losses by some decent teams) to climb back up.