Will my text still be selectable afterwards?
Yes, always. The text, the fonts and the vector drawings are copied into the new file untouched. Only the photographs are re-encoded, and only when re-encoding them actually saves something.
Almost all the weight in a large PDF is photographs, so those are what get re-encoded. The text, the fonts and the drawings are left exactly as they were — and if the result is not meaningfully smaller, you are offered nothing rather than a pointless second copy.
Measured against your original
Nothing compressed yet
Yes, always. The text, the fonts and the vector drawings are copied into the new file untouched. Only the photographs are re-encoded, and only when re-encoding them actually saves something.
Because the compression was not worth taking. There are four ways that happens: the document holds no images to work on, its images are already efficiently stored, the saving came to less than one per cent, or the rebuilt file was larger than the original. In every case the result panel says which, and your original file is already the smallest version.
Because the work is done by your browser's own image encoder, and they do not agree with each other. The tool compensates by encoding, measuring the result and stepping down until it is genuinely smaller — so everyone gets a smaller file, but not the same file.
It removes the document's metadata: the title, author, producer, creation and modification dates, and the XMP packet that often carries the full editing history and the author's name. It does not remove annotations, form fields or attachments — that is what the redaction tool is for.
They set how far photographs may be scaled down and how hard they are compressed. Light keeps photographs close to the original, balanced is a good default for email and uploads, and strong produces the smallest file with visible softening of photographs. None of them touches the text.