Decrease Game Size

What do you mean?

You know the .dll files that you need to run a blender runtime? You need those. :3 “Blenderplayer.exe” and “Blender.exe” are unneeded to run the runtime file!

There are two ways to handle ‘runtimes’ and that is where this confusion is coming from:
You can use ‘export game as runtime’ from the export menu within blender. This packages the blend file inside a duplicate of ‘blendplayer.exe’ and set’s it up to run with all the settings.

The other method is to have the blend file separate, and call blendplayer.exe with a bat file that specifies the blend.

About security, yes, renaming files is a good one.
Other than that python supports unzipping encrypted zip files. If you were really pedantic you could put all your assets into the zip, and then on runtime, unzip it, and when you close the program delete the created files.
There are a few problems with this system though:

  1. The user can switch tabs to get at the data.
  2. If the game crashes all the data is left lying around.
    Remember though, it is impossible to make something ‘fully secure.’ The more time you spend on it, the more secure it gets, but if someone tries hard enough, they could always break it. The only thing you need to do is to stop most people from accessing it.

http://www.blenderaddons.com/scripts/orphan_cleanup.php

Try it…

Last I tried, blenderplayer compresses to ~5.3 MB with UPX.
http://upx.sourceforge.net/