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l2tpv3 , And add encryption and compression - can it be done?

Have two 7206's with vam2's. Right now I'm running these accross a 200M metro ethernet, and using l2tpv3 xconnect config to extend vlans between data centers. Now what I'd like to do is add compression to this because we are exceeding our contracted bw on the WAN.

If you look at the drawing, you will see that the xconnect l2tp tunnels are configured between loopbacks on the 7206's . Wondering if setting up ipsec tunnel between my two loopbacks and then adding the compression will actually work with that l2tp. The l2tp of course addes 48 bytes of it's header to each packet (mtu issues) and then adding encryption and compression to this seems pretty tricky.

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