What is the obsession with smaller images? If you are running out of disk space before CPU, RAM, IOPS, network, well there is a cheap fix for that.
Second reason is that I can't fit more than two hard disks in my laptop, and more than 4 in my desktop.
Third reason is that internal or external hard disks are not exactly cheap in my country. My country sees ridiculously high import duties and retail markup on all electronics.