In some cases, you can even replace something like BusyBox init with a simple bash script that does the bare minimum to boot your application. Mounting devtmpfs, proc, sysfs, etc. Dumping glibc is also worth exploring, if feasible.
Chroot is a good tool to test your initramfs and see if all the necessary application dependencies are present before bundling it into the kernel. If you can run it in a chroot, the kernel can run it during boot, and the development loop is much tighter.
Disabling kernel modules and enabling only the features needed linked into the kernel will save further space and boot time.
It would also be helpful to test zstd compression instead of gzip.