"Higher ratios (with lots of GR) produce a
smaller sound.
(ie you need more volume of this in your final mix) Lower ratios (with less GR) produce a
bigger sound.
(ie you need less volume of this in your final mix in order to still hear it well)" But, there again, it depends. If what you want is a really long, sustained bass sound, and that's not uncommon in various genres for some types of songs, then lots of gain reduction will provide that, and that's what makes it hearable in the way you want it heard without having a massive, clipping peak on the initial note. You need that much GR in order to have the trailing ends of the notes brought up for lots of sustain. If you were mic'ing an amp, you might get that effect by cranking the amp up really loud, which effectively compresses the signal. For DI'd bass, the compressor is a way to make that happen.
And it does create a very big bass sound if you do that. Though, it also means that the bass has to be a very featured instrument because it's going to be taking up a lot of space. But that's not uncommon in rock music.
If you are depending on the initial impact of the bass, and not the sustain, then yeh, you don't want to choke it with too much GR. You might use a high ratio but keep the threshold up, so that it's more there to catch the occasional over-loud note, not so much for an effect. But, again, as I mentioned, if it's a situation where you have a tight kick/bass, the kick may be providing a lot of the impact, and heavy compression with a fast release may serve to keep the impact of the bass from stepping on the impact of the kick, leaving the rest of the bass note to then trail after it.
I posted an example of this the other day over in the how to record DI bass thing. It's the bed track for a new tune I'm working on. The bass is heavily compressed, but it sounds super-punchy because I worked really hard to learn the bass part so that it's dead on the kick drum all the way through. Well, not inhumanly dead on as would more likely be the case these days, where each part would be edited to death to be microscopically (and I say boringly) together. But, you get the point. It's sounds really punchy because the kick is providing the punch, and the kick and bass have tones that work together well, and the bass' initial impact is quite muted due to compression so it doesn't fight the kick. It's a combination that works well for this particular style of rhythm section.
http://www.charmedquark.com/Web2/TmpAudio/TestD.wma And the compression gives a bit more sustain to a tone that would otherwise die out too quickly because it's not a heavily over-driven tone, just a somewhat overdriven tone. I'm not going for the massive, uber-sustained bass type thing here, but the kick/bass are very featured instruments so I wanted the bass to fill in between the often fairly widely spaced kick/bass hits, without being overpowering, which I think it's doing pretty nicely, though it does involve a pretty considerable amount of compression. And it was done with a pedal on the way in (while it's all still fully analog), so no more is required in the mix, and the less processing done ITB (IMO), the better.
There are obvious reasons why someone recording another bad would be light handed on compressing on the way in, because it can't be undone and they are doing it for money and don't want to have to do it again. But, for self-recorders, I don't get the point of not learning how to commit up front and commit to compression, EQ, and even effects. It used to be common to do this, and I think it creates a lot more 'happy accidents' that lend uniqueness to music, as opposed to the modern trend of everything sounding exactly tuned, exactly timed, exactly sample replaced, etc...