Unless your frame is super small, you shouldn't have to sacrifice a water bottle. The mount that comes with that pump attaches to the water bottle bosses underneath the cage, and the pump sits beside the bottle.

The question would be whether the Q-factor in your cranks is large enough to clear the pump. Most people's are.

I actually opted for a Micro Rocket mini-pump as backup to a CO2 system. I don't save any weight that way, but it means I can put my primary inflation in my seat pack and only have the teeny pump on my frame. I don't even notice it. It's functional when I'm out of CO2 cartridges, but I wouldn't want it for my primary - it takes fer-freakin'-EVER and a fair amount of effort to air a tire.

(And FTR, I got it on sale and it matches the bare carbon patches on my frame. I am NOT a weight weenie - you should see my multi-tool. They make the exact same pump in aluminum for $10 or $15 less.)

I am concerned about the waste, but I don't get that many flats (touch wood) and CO2 cylinders are recyclable steel.