The Finder already handles this differently for file copy operations - you don't get a file copy progress dialog if it takes less time than you need to react (just an audio confirmation). It seems like Archive Utility didn't get that extra attention though.
Maybe a new type of dialog could help? Rather than showing this blinking things, just show a notification of style "24 archives extracted" (kind of like what forklift does)
By hypothesis (see https://news.ycombinator.com/item?id=13135385), the operation is effectively instant. If it weren't, a UI on its own thread could notice that and act accordingly.
If a dialog popped up for the brief amount of time it actually takes to unzip, it might freak out users: "huh? WTF was that??"