I have a .msm of 100MB and when I build my WiX project I get a .msi of 200MB Here some code:
As Chris says, you can try to enable high compression as illustrated here:
Read the media element documentation for more information. The "high" compression setting enables LZX instead of mszip format as far as I know.
Here is a post with info on the various compression levels available for the MSI: What is the compression method used by MSI files?
Some Links: