defconfig: Switch to XZ compression

With GZIP kernel is too big to flash
Framebuffer console updates from K3.0
Panel fixes

- We are using CMD mode
- init_pico is never set to 1 (also removed in K3.0 DX msm_fb port)
defconfig: Update MTD configs

From https://github.com/PicoLegacy/android_kernel_htc_pico/commit/fb7f84793696d3b7db431c857e4566db9f9b3df5