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People are going to have to realize that the situation is going to get worst rather than better. File sizes are getting bigger, not smaller. Hell, Xcode itself is a hefty download. Refusing to update is not going to hurt Apple one bit. They'd rather you buy a new Mac with it preinstalled anyway. Fragmentation is only going to hurt you in the end. At 29.99 I doubt most people wouldn't download it, and as more developers start to use the included apis older versions of OSX get will see less support.
Windows 7 for example is a pretty big file download from eopen. Its about 3.75 GBs it think. OSX is a bit bigger coming in at 4GB. Most likely due to drivers, WIn7 uses Windows update to search for drivers. Either way, I don't 4GB is all that bad. It would be nice if Apple let put it on a USB stick but then they wouldn't be able to control people copying it all over the place.