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The OpenNI driver already uses image_transport to publish images, so you actually don't need to use republish. Assuming you have the image_transport_plugins stack installed, rostopic list should show compressed and theora versions of each image topic.

In rviz, in your Image parameters just click Transport Hints and select compressed or theora from the drop-down.

Using republish does make sense if you have multiple (N) subscriber nodes on the other side. If they all subscribe to the compressed topic, then you decompress each image N times. Better to do the decompression once in a republish node, and pipe the raw output to the N subscribers.