If you have a dvd player that can play divx, you could convert to an .avi file using the divx or xvid codec. The resulting files would be considerably smaller than what you see in mpeg2. Looking at videohelp.com, you get
this list of video conversion tools that can produce avi from mov. (Check to make sure the one you use can utilize the divx or xvid codec)
Once in an avi container, you can burn the videos to disk as data files. A divx compatible dvd player will show the different files on the disk and allow you to pick which one to play.
If you don't have a divx compatible player, you're stuck with mpeg. And the standards for dvd format are intentionally stringent.