i'd like to note that the space hogging part of kernel packages isnt actually the vmlinuz binary nor the initramfs but the modules put under /lib/modules ... in cases where the squashfs is used on teh target device (i.e. USB keys, installs to small flash devices etc) the 80-100M can make a massive difference for the overall squashfs size (ths might be worth to be put into a different bug though but i found it worth mentioning here) ...
i'd like to note that the space hogging part of kernel packages isnt actually the vmlinuz binary nor the initramfs but the modules put under /lib/modules ... in cases where the squashfs is used on teh target device (i.e. USB keys, installs to small flash devices etc) the 80-100M can make a massive difference for the overall squashfs size (ths might be worth to be put into a different bug though but i found it worth mentioning here) ...