I understand that GZIP is a combination of LZ77 and Huffman coding and can be configured with a level between 1-9 where 1 indicates the fastest compression (less compression
No, there is no downside on the decompression side when using the maximum compression level. In fact, there is a slight upside, in that better-compressed data decompresses faster. The reason is simply fewer compressed bits that the decompressor has to process.