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The other thing you misunderstood is the point medievalelks said:
If you have App V1.0 + DLL V1.0 = 0.1MB + 2MB, and you develop a second version, App V1.1 + DLL V1.1, then you still have DLL V1.0 on the system as well, taking up 2MB, even if you remove the App V1.0 [unless you also KNOW that no other application is using DLL 1.0 - in which case there is no benefit of using DLL's in the first place].
True, but you gain more the more application that uses them. If we'd talk about dlls, would it be better for 2 applications to use the same code or put it in a dll? This argument also goes back to my previous post. The more applications that shares the code, the more you save.