Yeah, but it's more convenient to just view the whole thing as if it were a folder in a file manager.
I don't think we use linux in anywhere near the same way. I take my mouse off my desk when I use linux (except when I browse the web) to clear up that space.
For me, it's a factor of ten faster to type the commands than to fetch my mouse and go clicking around to navigate to the directory I want. It's so much easier to type
cd /home/trinick/projects
tar -xzvf projectone.tar.gz
vim projectone/main.cpp
rm projectone.tar.gz
tar -zcvf projectone.tar.gz projectone
than it is for me to type
thunar then go to base directory (/) then click on home, then click on trinick, then click on projects, then click on projectone.tar.gz, then somehow figure out where thunar stores the temporarily decompressed files so I can go type
"vim /path/to/my/file" just so it can be automatically recompressed when I save the file.
But better yet; the better idea is to just not store files that you need to modify in compressed form. Being compressed has no benefit outside of distribution, leave your files decompressed and just compress them when you need to distribute. Problem solved.