I edited my PSD file to merge as many layers as possible, turned most buttons into HTML text rather than images, and then compressed my content images with JPEG-Medium instead of PNG-24. The resulting html folder was significantly smaller (1.7mb v. 4.5mb). I don't like the text buttons showing up as different fonts in different browsers but it's worth the annoyance for it to load faster. The problem now is that on the drop-down menu on the left side, the buttons rollover states don't match up exactly with the normal state. I'm not sure what caused this, but I'll keep messing with it.You get a <div> tag for each graphic element on the page, more or less. That's not quite true because SiteGrinder will automatically merge overlapping non-interactive graphic elements that are common on multiple pages for you and so you'll get just one <div> for all those items. Believe it or not, SiteGrinder is a _very_ good optimizer, it automatically merges and re-uses graphics and CSS for you. Computers are great at these sorts of calculations.
So the question of "reducing divs" is the same as "reducing graphics", much as it would be with any tool, not just SiteGrinder.
As I mentioned before, if you have text layers in Photoshop they can be output by SiteGrinder as either "real" HTML text or a graphic. Right now your site is opting for graphic output. Real HTML text is generally preferable for semantic, SEO, and bandwidth reasons. If you want a Photoshop text layer to be output as HTML text, set its anti-alias to None. That tells SiteGrinder to output is as HTML. Alternately, put the -text hint on that layer.
Also, instead of graphic buttons like you have now, you can make text buttons (just turn off the AA), or just use one multi-lined text layer and put the -menu hint on it. Then SiteGrinder will output a <ul><li> menu construct.
Also, crank down your compression options in the Compression pane. For the default, go with one of the Dithered GIF options. Use JPEG for photos.
In the SiteGrinder Report after it builds it'll tell you how much of the media is shared between pages, what the initial download cost is, what the average page thereafter cost is, etc.
Hope this helps,
Chris
Here's the new site (no design changes yet, just working on optimizing it first).
The old site is still online here
Does the new one load faster for everyone?