Stripping all the binaries works. Executables are found in...
tool/avr/avr/bin/
tools/avr/bin/
tools/avr/libexec/gcc/avr/
tools/avr/libexec/gcc/avr/4.0.2/install-tools/
It is safe to just do a "strip *" in those directories. It is smart enough to not butcher the handful of scripts that are in there.