That's just hilarious! So, in my SDK on a desktop that has over 500GB available and no need for space saving.... it's optified. But on a device with 256MB root and 2GB /home and in dire need of saving space... it's not . Win.

Also:

We are up to 5! Keep the votes coming, we're halfway there!

@Laughing Man:
I created a station on my N810 and the first couple times I had a song playing and ran into various issues (not the ones you mention though); but the last couple I paused the song first and then created a station and it all went perfectly.

Can I get you try this a couple times and see if your problem is reproduceable every time? And to everyone else, can I get a few people to try creating stations on an N900 and see what happens? (My SDK died on me yesterday)

I should be getting my N900 today and will see.