We struggle with similar distribution issues. I use 7-zip to compress and split the image into ~1GB segments. Compression takes several hours when using the highest compression level but I believe it is worth the effort. Today we use a Dropbox business account (unlimited size) for distribution. In the past we used FTP site and FileZilla because FileZilla would pick up where it left off.
Other ideas to reduce image size...
Does your virtualization solution have a 'disk cleanup' capability? When finished building the image, I shut it down and run 'clean up' on the image. This releases unused space and reduces the size of the virtual disks before compression.
FYI: The smallest OS footprint would be Linux (CentOS). However, most people don't know how to run Linux and if production is a Windows environment, you don't want to build a Development environment in a non-Windows OS. Windows Server Core is the smallest Windows image footprint. It is not supported (i.e. not tested) by PTC but I have successfully installed and run Windchill on it.
We access all VMs either thru VMWare Workstation/Fusion Console or Remote Desktop. All VMs are configured to act as server and client. I install Windows Desktop Experience, supporting applications (Notepad++, 7-zip, Chrome, etc.), and configure the browsers for use with Windchill. Users can integrate with their desktop if desired but the idea is the image is self-contained and usable without any special setup steps. The entire image is ~100GB, even with all the extras installed.
For larger images I work around the distribution issues by hosting them in my VM lab and let everyone connect to them via VPN/Remote Desktop. There are a lot of benefits for VM administration. I can also build more complicated environments with separate servers for Windchill, PSM, Navigate, cluster configurations, etc. The only negative is the developers need to be online and connected via VPN/Remote Desktop.
The last challenge is the size of the data. What developers really need is your business configuration and a sample set of test data. They don't need your entire database dump file or all the file vaults content. However, that is a whole other topic with many alternative solutions...