Current operating systems and distributions are somewhat bloated. Some of them such as Windows XP are incredibly bloated. By contrast the OSHS will try to be as tiny as possible. If you remember the times when MS-DOS was the leading operating systems on PC platform, you can imagine how tiny the OSHS and its applications will be.
The key portions of the plan to achieve this are compact binary format and extended dead code elimination. These two features of the OSHS will lead to something that might look incredible at first sight: feature-rich operating system with base system utilities, system library, compiler and linker that fits into 20 MB. Without any compression.
This tiny storage space requirement will imply the tiny memory space requirements. It really is possible that the OSHS will not need a swap partition (or a swap file) when operating with 32 MB RAM or more.