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Using the search and replace tool you can easilly get rid of all the whitespace.
and off you go. All the indentation will be removed and if you play a little with the end - delete keys you will soon have a very compact html file.
I saved over 30% for my test file >> it went from 11K to 8K (well 10.8K to 7.51K according to windows).
If anybody knows a fastest way, please let me know.
Leo
ps if you want to go back in code view to edit some code, all you have to do is go in design view hit ctrl+a, ctrl+x and ctrl+v it will restore the code with indentation.
ps2. make sure you test this on a test page before doing it for you whole site, you may have designed your pages in a way that you need the whitespaces