Dave Plummer, a former Microsoft engineer, has created TinyRetroPad, a minimalist text editor that is only 2.5 kilobytes in size. It aims to provide a simple text editing experience, reminiscent of older software like Notepad, which has become bloated over time with unnecessary features. TinyRetroPad includes essential functions such as Open and Save As dialogs, font selection, and printing capabilities, while using assembly language and the RICHEDIT50W from the WinAPI. The application requires more system resources to run effectively but focuses on maintaining lean code and binaries.