Yeah, I was just writing a design doc earlier today and my math for how big a download we could reasonably expect users to wait for was based on a 5Mbit/s download speed. Half a megabyte takes under a second at that speed, but 5 megabytes takes more like 8 seconds. That's a huge difference. In an environment like the Web, where ephemerality is the norm, you really have to stay below 1MB from what I can tell.
Size matters a lot.
There are also other factors to consider. I'm not huge in premature optimization, but damn.
Our current plan is to support the complete feature set while still supporting places with connectivity around 5Mbit/s. We are still in very early stages (we only just put out the tech preview today!) but we have some confidence that this is possible. Personally I'm more worried about the performance of layout animations (e.g. resizing paragraphs) than about download size, but again, it's early days still.
Half the people in the world probably struggle to have access to a 10 Mb/s connection. Even I go to places with connections that are tenuous at best.