That's software not installed by default but available on the ISO, should you decide to install it. Earlier ISOs of TinyXP were less than 150 Mb in size.

The "MicroXP" variant (also from the same ISO) installs in <10 minutes and takes about 250 Mb if you disable the page file. It can even be reduced a bit more if you know you're not going to use some components (e.g. a browser), I assume.