Hate the fact that floppies can only hold 1.44MB of data, and even less if a filesystem (like FAT12) is on it?
One solution is to low-level format your floppy so that it has even more space than before.
When your floppy comes from the factory, it is low-level formatted to hold 1440kB of data, and already has a MS-DOS filesystem on it, eating up more space.
You can low-level format your /dev/fd0 to hold at least 1760kB of data, maybe more possible with some strange floppies.
fdformat /dev/fd0u1760
This formats your disk with 1760kB. To see more run sizes ls /dev/fd0*, but not all of them work.
Next, you need to put a filesystem on it (high-level formatting).
mke2fs -m 0 -N 150 /dev/fd0u1760
There's no point in putting a FAT filesystem on here, because it won't be readable in Windows anyway.
Other types of filesystems you can use are in /sbin , beginning with mkfs*
Add this line to /etc/fstab ->
/dev/fd0u1760 /mnt/1760KB.floppy ext2 users,defaults,noauto,exec
and mount it as root (for some reason, it won't let you mount as a regular user or if you don't give a mount point and device name).
mount -o users /dev/fd0u1760 /mnt/1760KB.floppy
To even further compress the filesystem, you could do
mkfs.cramfs /mnt/1760KB.floppy /dev/fd0u1760
and mount it like so (as root)->
mount -t cramfs -o users /dev/fd0u1760 /mnt/1760KB.floppy.cramfs