When you upload an app to the market you can chose to copy protect it..It's just a simple radio button. They will be doing away with it in favor of Application Licensing. But they have been saying that for a long time..The only downside is that your app cannot be installed on the sd card. Attached is a screen shot of the option.
My app had only been about 700 KB until I started using PNGs for graphical buttons to make it look much nicer. By the time I'm done it will probably be about 1.5 MB. Eye candy is important to me on this app so I can't do much about the overhead the images cause. I just hope that the size doesn't put people off. To me that isn't that big but I have seen people complain over smaller apps.
Photoshop does a great job at reducing PNG file sizes with no visible loss in resolution. You can also check out free utilities by doing a Google search on "reduce png size". Also if you convert the images to JPG you may save a lot of space.
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