Can we add number of compress streams supported in DSP?
You are confusing number of formats supported with number of streams
supported.
The latter is exposed through the actual devices supported.
No, DSP may be able to support only so many simultaneous streams at any point of time. Yet, DSP can support any number of formats. Though the device entry may be created for each compressed stream, how will the user space programs get the number of compressed streams supported?
The answer has already been provided. I agree with Mark there's no reason why this API would need to provide resource management capabilities, it'd need to be handled with a separate interface addressing PCM and effects as well. In the mean time user-space can put product-specific restrictions on concurrent decoding.