Why does the author say "memory" when he means "disk space"? Or does he actually mean "memory", as in "RAM"? In that case, why would the size of the executable matter?
As for why the size of the executable matters, you needed to have the entire executable in RAM before you could actually execute it. That's not so true these days, but it was back in the good ol' days* when you hooked tape cassettes up as your external storage.
* Get off my lawn!