That's not true, for example if you beat Calamity Candy then you can craft her stuff (sword/ring).First of all, only the brothel bad ending gives you stuff, and secondly you can't continue if you lose to a bad ending. You just restart where you last saved. Third, defeating Calamity, who is an optional boss, doesn't lead to a bad end, it leads to a new route with a new ending (However you aren't forced into it since there's no indication you'll be going down a different route, Chaotic said he'll give the option to reverse it later on in the route's storyline if you don't want to go down the Calamity route)
As for the files being too big, honestly dunno about that, I'll ask Chaotic about compressing them for future updates
I was saying if you beat the "bad" ending you are free to continue to play, but if beat Calamity you are still in her bad ending because she will corrupt the dwarf girl. So, either you don't beat her => Reset, you beat her => Bad ending, you know what i mean ?
Make something optionnal and say "all the news stuffs, scenes etc ... are optionnal" doesnt work in a game like that, ofc i want to get her gear just to the satisfaction to kill every boss and get every items. Or to discover new scenes. But it's a good new if there are a way to later reverse it.