Why does a thread with a single simple question about "why small image circle lens is not smaller than a large image circle lens with same focal length and relative aperture" take off tangentially to "equivalence" and other totally unrelated matters?
I have also wondered why Zuiko 300mm f/4 is 227 mm long and weighs 1475 grams. New Nikkor 300mm f/4 147mm long and 755 grams! First for M4/3, later for FF. Certainly the construction is different (and flange distance differs), but thinking that smaller sensor means smaller lenses is not quite true. Let's repeat: I am not talking about equivalence, but simply ask why 300mm f/4 lenses built with small image circle are not smaller, as they should be simpler to design.
I made the same observation on another photography site, and naturally somebody replied "of course Zuiko is bigger as it is 600mm equivalent"... Oh yeah...
I think it is probably more due to engineering, patents, and choices made than a "can we". Theoretically, there is no reason the Olympus couldn't match the Nikkor in size. But then you need to start thinking about the type of optics used, motors used, how much time they wanted to invest in engineering, manufacturing costs, and the list goes on. It's easy to armchair quaterback the choices made, but without a view of the entire decision tree that went into this.
One thing to consider, is that the Olympus is branded as a "Pro" lens, meaning they probably wanted little to no sacrifice in the optics ability to render the scene. In the Nikkor, you still have the 300mm f2.8, so Nikon could, hypothetically, cut a few corners on the F4 and not worry as much.
EDIT: The optics may be a bad example, as I don't actually know how good the Nikkor's optics are compared to the Olympus. But, the point still stands.