There are perfectly viable linux distros available at less than
100Mbyte (e.g. Puppy, Damn Small Linux). Tiny core is 10Mbyte (plus
you then need to download a browser).
I writing this using Chrome OS running on an early ASUS EEE 2G Surf PC
(build courtesy of hexxeh). In it's 2G memory, it has a fully featured
Linux, including Open Office - and there is still some room left for
user data! Chrome OS seems to be a little larger than 2G.
I do think the developers need to think seriously about the size. A
smaller Chrome OS would attract many more users (faster to download,
more useful on older handware) - and also enable it to be used on a
wider range of new low cost hardware platforms.
Where do you get that from?
I think it would be nice if the OS was smaller, but I think it's too
early in development to worry about cutting things out or seriously
reducing the size.
And 2gb isn't bad for a fully featured OS. The bare Ubuntu barely fits
on a CD image. After I install a few programs I use daily that aren't
on the bare install, it easily comes up to 2gb.