In theory, this is possible right? I mean, a deterministic wallet that uses compressed keys. So I can have a watch-only wallet on my web server. (Like a game website for example.)
It does not matter whether they are compressed or not, otherwise Armory itself would not work...
See this thread how to host a today's watch-only wallet on a webserver with PHP: https://bitcointalksearch.org/topic/--836465
That's good to know, but I would like to use the compressed keys version of Armory or the watch-only wallet. In other words, I don't want to use any bitcoin addresses whose private keys begin with the number 5.