I've been playing with OpenLaszlo. I get large SWF files as well, 96k for the minimal Hello World. Added things adds to the size, of course, but the 96k seems to be a baseline size for the OpenLaszlo framework.
I really liked the Indian Head test pattern widget. So I wanted to do a widget that flipped through a number of common TV test patterns. Alas, that 96k baseline, plus the size of the image resources themselves balloon it to nearly 200k. Ugh! I guess I'll have to make a separate widget for each screen. But, even so, each of those will be around 100k, 5 times the size of the existing Indian Head test pattern widget.
It doesn't help that I'm old and used to straight procedural languages. Declarative ones like OpenLaszlo hurt my head. I can't even figure out how to kick off a method upon widget load, so I can't get the widget to start flipping test cards on its own.
Then I thought about making a clock. I have an old OS X dashboard widget that shows a clock using images of nixie tubes. That should be easy. But I have yet figured out how to pull the current time in OpenLaszlo. I may just be missing something easy.
Then I thought about using a C-64 font TTF to make a little C-64 fake emulator. But the C-64 font I found on the web won't work inside a Flash app. Dunno why. (Not a Chumby-specific problem at all.)
I guess the bottom line is, while most of my problems stem from my inexperience with the framework, that 96k baseline penalty will make any OpenLaszlo widget bloated.