Wow, diet libc has become quite a cool project! I just finished the ports to alpha, mips and arm and now it works on all major platforms that can run Linux in the first place!
I started a few other projects in the mean time. fgetty, for example. fgetty is a rewrite of mingetty to make it link against diet libc and produce a small binary. The memory footprint difference is staggering.
minit is planned to be a minimal init that is a merger of the ideas of sysvinit and daemontools. It can run even when the whole file system is read-only and you can still tell it to start a service after boot time. And: it has dependencies! I.e. when you start nfs, portmapper can be started automatically. And the static binary is only 7k!
I guess they are right. Size does matter...