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I worked in a company which developed embedded-linux devices for which
a software image fitted into a 2MB EPROM. Back then we had a 4MB
EProms, and for a safe update always used only half, so the old image
is kept while a new image been written. 2MB was compressed: Linux
kernel with all needed drivers, clibs and other essential libraries,
busybox, some network tools, even a webserver, and of course the
custom applications been developed.

I wonder what audience your product is targeting?