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The larger file size is because he saves it uncompressed, instead of DXT5 compressed.Your different file sizes have to be coming from something else.
And the reason he saves it uncompressed, is because the gradients in the AO introduces compression artefacts, which will not be present in the "flat" skin without AO.
So the question as I see it, is if those artefacts are so bad that saving uncompressed is really necessary. Ok, it's a trade, but I'd go with AO and perhaps some minor compression artefacts.