also, there *is* such thing as Optified Linux System - it's not invention of Nokia's engineers. Things like Optware existed looong time before anyone ever dreamed about device like N900.
[off-topic - in my own thread, lol] By the way, optification isn't worse, that can happen. Recently, I've set-up OpenWRT in my WRT54GL router AP. WRT54G* family have 4MB flash storage (except for some devices from first series, utilizing 8MB), which, after having basic stack installed, leaves You with whopping ~1 MB of free space.