Excellent point. My C:\ partition of Windows 7 is just barely 15GB and Windows takes almost 90% of it. The remaining 10% is almost used by Chrome. Whopping 1.5 GB for 6 months of history!! What the heck it's storing there? Comparatively, my Firefox's 4 years history is stored in a 85MB file.
For anyone who has doubts check your AppData folder in Windows. This is a moot point considering the storage points available nowadays, but still i have no explanation why Chrome is taking so much space. I had to use a portable version of Chrome to make it not install itself into the User directories deep inside the Windows system folders.