You can always switch to a more specialized solution if the repository size starts bugging you, but don't fall into the trap of premature optimization.
Using a real database backup solution isn't a premature optimization, it's basic system administration.
Also resetting the repository once every 1-2 years, and keeping the old one for a while is fine for smaller setups.
Depending on your business size and the amount of resources you want to allocate towards "basic system administration", accomplishing the same task with fewer tools could have its advantages.
This isn't just about size though. You're storing all customer data on all developer machines. You're just one stolen laptop away from your very own "we take the security of our customers' data very seriously" moment.
I still think that database size is not the only consideration.