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FTR I asked Julien to provide his opinion as a user and he agreed that having just one --byte-compile/--no-byte-compile option pair seemed better than the existing names (where --compile and --optimize are unrelated).
I wanted to avoid --byte-compile=0 to generate pyc, because I expected people to interpret it as "disabled" instead of "optimization level 0". Thus the idea of using letters (and avoiding to use c and o as not all VMs have pyc and pyo files).
Note that the new spelling for --compile is the seemingly redundant --byte-compile=b, but that does not matter as it will be the default value so people won’t type it.