I have read that partedmagic uses squashfs-lzma for it's compression, which yields tighter compression at the expense of performance. Not only do we use gzip compression, which yields faster performance, but we use 4kb block size as opposed to the standard 128kb block size.
4kb block size along with gzip compression makes for tcz extensions that can be a bit larger than an alternative lzma compressed 128kb block ones. But the gain is faster cpu performance due to gzip, and lower memory use due to the smaller block size. We like small, but not at the expense of performance and the support of modest hardware.
Oh, and Partedmagic 4.8 is 73mb, not 50mb.