One already exists. http://www.damnsmalllinux.org/
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1,100+ portable packages, 1.2 billion downloads
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One already exists. http://www.damnsmalllinux.org/
These have been mentioned many, many times.
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R McCue
"If you're not part of the solution, you're part of the precipitate."
Assuming you actually mean a linux application that is portable, have you looked at klik http://klik.atekon.de/.
It makes a linux app somewhat distribution agnostic because it packages its dependencies. Don't know about package size though, could be quite hefty for a big app.