I just noticed that the account_move_line table was about 200MB while the index for that table was over 1GB.
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While I don't know why this is the case - reindexing this specific database reclaimed 2GB of space and reduced a 4.5GB database to 2.5GB. It was a 6.1 database upgraded via Odoo to version 7.0.
It has about 135,000 records in the account_move_line table.
The VACUUM command will also reclaim space by doing garbage collection within the table itself and rebuild indexes.