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I doubt it'll shrink, it sounds like you have been playing for hundreds of years and that is all the details of dead babies and other stuff in there.

It didn't shrink at first, but very slowly the file keeps shrinking. Starting at 560+ MB, it's slowly gone down to only 215 MB over about 10+ years or so. It seems to be working.
 
I downloaded the example bloated save file from the bug report thread. Found one area where the exact same event appeared 524288 times (thats 80000 in hex). Hacked together a python script that scanned the file, watching for exact duplicated events that appear one after the other. That cut a 717 MB file down to 375 MB. I suspect there's still bloat, but it is of course difficult to visually inspect a 375 MB text file...