That's a good example from the demoscene, but that was done as a tech demo, rather than as a serious commercial product. To illustrate the bloat of modern software, I think it's better to point to examples of highly compact 'real' software.
Of course, a great deal of effort must have gone into squeezing it down to 8MB, and it wouldn't be reasonable to ask modern developers to go to those lengths, but still.
