Google Raised Android Market App Size Limit From 50MB to a Whooping 4GB
techieapps.com
techieapps.com
Edit: with 4GB I could release apps that include my backups...
As for Google books, they clearly took the time and effort to make their download small. Even "hello world" flashlight type apps on my ipad are bigger in size. And saying their app doesn't do much as the reason is also silly (ibooks in comparison is 50MB). I single them out as they definitely did take the extra little bit of time to make their package small.
Go into itunes and view your apps by size. You might be surprised what is small and what is big.
This really doesn't make much of a difference outside of the fact that the download now comes from Google's servers which are much faster than the game companies servers.
Also, this is probably to accommodate the crazy 3d games that nvidia is pushing.
The only thing that comes to mind is that they're prepairing for an onslaught of media like Movies (which is the only thing that would take up that much space).
The new limit means that instead of installing large resource files that need to be hosted on your own infrastructure and downloaded through your own code, you can now have Google host these files for you.
This also improves the user experience, because there is no second tier install process and the users sees the correct space requirements on the market page.
This change would probably help fix issues where the user can't download the content, but could download the app through the market.