PC-BSD 7.1 Released With Integrated Software Manager
Death Metal writes "PC-BSD 7.1 is built upon the FreeBSD 7.1-STABLE operating system. FreeBSD is a UNIX-based operating system that provides a high level of security and stability. The Galileo Edition of PC-BSD includes updated versions of KDE (4.2.2) and Xorg (7.4). The latest version of KDE includes new window effects, screen savers, and better 3D Acceleration. PC-BSD exclusively features the Push Button Installer, a software installation wizard with a wide range of applications. The latest version improves PBI self-containment to increase reliability. The Add / Remove Programs tool and the Update Manager have been consolidated into 'Software & Updates.'"
While I understand your point in principle, storage is beyond dirt cheap these days. I have a hard time finding laptops with less than a 100 GB drive, and a 1.5 TB drive can be had for $130 on Newegg.
512 MB RAM, 20 GB disk, 200 GB transfer, five datacenters. $19.95/month.