Taking into account hardware requirements, chances are that you will have a DVD reader. I think its a bit silly to keep limiting ubuntu size to 700MB.
If they switched to DVD size (4,7 GB) we could
- Include more apps, not only more but also better. They claim that they don't include VLC because it doesn't fit so instead they include Totem which is a much worse player.
- Live CD and Instalation would be faster, since they wouldn't need compression at all, or maybe a much lower compression rate.
And for those who only have a CD player, offer a ripped version (like Alternate CD).
Best Answer
I am guessing it has something to do with wanting to make it available to as many people as possible, while the hardware isn't the real issue, the amount of time it would take to download a 1+gb is rather long. Plus, not everyone has high speed internet, or have limits, say 5gbs a month... which a 4 gb download would eat it all up in one download.