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The difference between the HTML and JSON response are nominal compared to the rest of the page. You'll save more bandwidth by taking away a couple of colors from a single gif. No, the real advantage here is having a degradable interface in which you only have one place where you're managing the html display aspect. Don't get me wrong, I'm not negating trying to cut down the size of a response, I just don't think that's the reason behind this.
Re: the code formatting, they're probably just stripping whitespaces to get rid of some of that bloat. Just look at Google, they're notorious for their "tiny" js.
Having one place to manage the display of injected HTML is one thing. Personally I'm a fan of using the AHAH approach when dealing with private non-distributable (for whatever reason) data. For example i use HTML injection for my portfolio since I have no desire to share the data associated with my portfolio outside of naterkane.com. But for a job posting service (that is often distributed via RSS) it just doesn't make sense.
And I do agree with you that it could be an advantage to return HTML if in fact this app degrades, but It does not (that's why having submit buttons for queries are always a good idea). If you disable javascript in your browser, nothing happens.