I found the same thing, Python plus a server takes up a lot of MB.
What extensions do you need?
I dropped Python due to reliability problems running 24/7.
Moved to shell scripts and busybox-httpd.
The only tcz extras I needed were busybox-httpd.tcz and i2ctools.tcz
As a side effect I learned lots about core Linux stuff in the process.
Can do quite a bit with shell scripts, cron and watch.
I generate the index.html file from scripts and busybox-httpd serves it.
For fancier web pages I will probably move to Nodejs and Javascripting.