I'm running out of space too. And I'm loosing my hair to find a way to be more efficient and remove bytes of instructions. :o The program doesn't seems to be long and complex at all, but I have to separate the program in parts and run thems on different boards.
I had a look at the bootloader and it seems to take more than 50 of the memory. Is there a way to shrink some parts of the boot loader? Remove analog instruction for example when the project concern only the digital pins? Or different Bootloader lights versions?