The engine in itself isnt that big. I think a big part of the current size is the SDL library. I'll try to find the best way to optimize the size of the output files if possible.
upx got it down to 774kb, works fine, presuming it's just a guy who can move around on top of a thing. A little bit a day, you'll get somethin, don't think about the big stuff, just do a lil bit regularly.