It starts getting into the weight of armoring the gyro/engine vs making it smaller at the cost of density. Even compact gyros (and especially XL) are in my opinion iffy vs armoring them or upgrading to a heavy version
Eh? At practically useful engine ratings (200+), you can get an armored compact gyro for the same or less weight than the heavy variant. At that point the armored compact gyro is strictly superior to an (unarmored) heavy one.
As far as Ultra-Compact Gyros/Fusion engines go, I guess my question is... why? You'd go from 2 crits to 1 with a theoretical super compact gyro, or from 3 engine slots to 2, while costing some amount of extra weight. Since weight is a major reason why the regular compact-type equipment is so rare, I don't really see the value proposition that makes this worthwhile. If survivability's the main goal, component armoring, advanced armor usage, and reinforced structure should all be experimented with first before developing another engine or gyro standard.