I'm new to compressed sensing, and am a little confused about the assumption of the basis matrix $\Psi$. Is $\Psi$ assumed known in compressed sensing?
Specifically, suppose that a signal $x$ is sparse in some basis, say $\Psi$, i.e. $x=\Psi\alpha$, where $\alpha$ is $k$-sparse, i.e. $\|\alpha\|_0\le k$. My understanding is that in compressed sensing, we store $y=Ax$, where $A$ is the $m\times n$ sensing matrix with RIP. Later on, we can recover $x$ theoretically by
$$\hat\alpha=\underset{\alpha\::\:y=A\Psi\alpha}{\arg\min}\|\alpha\|_0,$$
(or use $l$-1 norm) and then $\hat x=\Psi\hat\alpha.$
In doing so, we need to know $\Psi$ to recover $x$, don't we? But if we know $\Psi$, why don't we just measure $z=\Psi^{-1}x=\Psi^{-1}\Psi\alpha=\alpha$, and store the value and index of the non-zero components of $z$ ($=\alpha$)? Can the dimensions ($m$) of $y$ be less than $2k$? Or is it that $z$ won't be perfectly equal to $\alpha$ due to noise, and we don't want to do thresholding on the fly? Or some other reason?
I'm confused about the rationale of compressed sensing, and would appreciate any pointers, comments, and clarifications. Thanks a lot!