Take it further!I look at it this way if we can shave 5-10MB+/- off a iso why not?
Why not do something similar to Arch Linux and only provide a core system to which you add only the stuff you want/need? The core doesn't even have a desktop. Arch Linux has done extremely well with this approach - but it's main afficionados are the techie types.
In the case of Puppy though, adding in the extra stuff should be made easier than it would be with Arch. The main desktop and network modules would be provided via the internet in the form of sfs modules - pre-configured and ready to go - just plug them in. Same for the browser.
Each developer would be in charge of his own module which would plug in to the same core as the other developers.
So that's five modules that would need a developer apiece:
Core, Network, Desktop, Video and Browser.
Other modules would be necessary as well, but these five should take care of a minimum working installation.