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).