Late but made it -
Epiphites - your south Texas Live oak has the ball moss - perhaps, but I doubt it, spanish moss too.
Everyone's correct, it's an "air feeder" and not parasitic to the tree however - large occurrance can host insect vectors of three deadly (for your area) pathogens.
Control is personal opinion, methods I recommend are hand removal, bicarbonate of soda spray (baking soda, 5 lbs per 150 gallons), or Kocide 101 (a copper based fungicide). I personally never recommend the fungicide and soda spray will act like a dissicant, pulling moisture out of the tree and leave a salt crust on the drip zone.
Most of the larger populations will be inthe shade on older dead growth, this makes removal more efficient (cut the dead out). John Paul is aching to climb some live oaks, you could call him - it's peaceful climbing all day pulling moss balls I thihnk he would love to try it.
The coloration of your leaves is seasonal - it's getting ready to shed last year's canopy while the buds swell. Live oaks won't show us any meaningful symptoms of chlorosis except some purple mid-season, which I call a phosphorous deficiency. If the root zone's become compacted as you describe, I suggest Medina Soil Conditioner - $8.00 per gallon, label directions would use 1/16th of that. It's a microbial stimulant, bacterial activity will restore loam again.
All in all, you're in a threatened area experiencing oak wilt mortalities in epidemic scale. If mechanical control is used for moss removal, wounds are a known infection court and many live stems will be opened while controlling the moss. At this time, with wilt being considered, maybe delay any action on the moss for now.