the pagefile is stored in the root directory of the drive. NOT in the windows folder so it cannot be part of my windows folder
the pagefile has NO BUSINESS being calculated as part of the OS install.
That's not the point being made. It doesn't matter where it's stored, it's the point that it takes space on the drive and will vary per user. The page file statement was not directly aimed at actual space for Win 7, it was directed at the argument of how some have less space after the install or rather, use more hard drive space than the next person.
Does MS determine the size of of the pagefile, or more precisely it's contents? No. Both are determined by RAM size, and besides, it can be changed. the 1.5x RAM thing is a misinformed guideline for the sake of a guideline; just read Windows Internals to find out why it's so misinformed.
It may be misinformed, I agree, but for a very basic explanation, it works, no need to split the atom. I don't understand where you say about MS determining the pagefile size, the point is the size of the pagefile will vary.
My over all point is that the page file size, being part of the actual install or not, has an effect on the amount of space left over AFTER an install. It will affect what people see on their drive, space wise.