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answers:

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On modern browsers and computers,, is it better to gzip files to save network traffic or to not gzip them which seems like it would save browser CPU?

+11  A: 

Yes, gzip them for transmission, the CPU needed to unzip them is very minimal.

Google has a full writeup here on the benefits.

Nick Craver
what actually does the gzipping? i wouldn't want anything looking zippy in my http header instpector. Just curious...
Gabriel
@Gabriel - the web server you're using usually, Apache, IIS, etc all have this built-in...as do the inspector tools, so you'll see be able to see the content coming down.
Nick Craver