It could probably be done, in theory. However, you'd really have to trim out a lot of stuff and further size optimize the distribution.
I don't know what specific steps to tell you to take. I can tell you that it isn't a project I'd want to work on. I quit fooling the the WL-530g largely because the Marvel SoC doesn't have an MMU, making RAM allocation issues tedious to work around. Since virtual memory doesn't exist, RAM must be allocated in contiguous blocks, pages can't be shared between process instances, and more. It's really a pita.