We're looking into jumping ship to Rackspace once they complete their move to Akamai for Cloud Files (anticipated to be finished by the end of Q1 this year). It seems like they will support the Accept-Encoding header: http://news.ycombinator.com/item?id=2097491
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That's a limitation we have to live with for now, unfortunately. We are looking into rectifying this.
You can fix it by running an nginx somewhere that serves the files, then setting your CloudFront distribution to point to that.
... of course, then you'll need to make sure the nginx server is properly redundant.
That is definitely one of our options.
We're looking into jumping ship to Rackspace once they complete their move to Akamai for Cloud Files (anticipated to be finished by the end of Q1 this year). It seems like they will support the Accept-Encoding header: http://news.ycombinator.com/item?id=2097491