"I am curious what your guys experience with the volume reduction system has been?"
I guess I really never answered your question about my experiences with the Prophet.
I use this pack right now for over-nighters and it was my pack on the Wonderland last year. I have other day packs available to me so I never have used it in that capacity. With any of my backpacks, I will fluff up the sleeping bag to fill any voids in the pack and don't worry too much about cinching them down as they are all relatively small (by REI standards) to begin with.
I assume you're familiar with the Prophet's volume reduction system but so we're on the same sheet of music here, there are cord loops on the pack and some plastic clips which allow me to clip the loops together towards the bottom of the pack. If the Prophet was my one and only pack, I'd want to keep those on the pack as an option for when I want to use it as a day pack. I really never use them but I wouldn't want to get rid of it. A scenario where I could envision using the Prophet as a day pack is while on a longer hike where I've set up a base camp and carrying it on some side trips without my bulky gear.
There is also a grosgrain strap on each side that is run through a fastex buckle. I use this on a fairly regular basis to secure gear, which is everything from packing away my trekking poles in the pockets with the grosgrain over them for security or just clipping my baseball hat there when I don't want to wear it. They're also great for drying gear, socks, etc. I never use this for volume reduction, but again, I do use them enough that I wouldn't want to get rid of it.