The stsadm operation is used to increased the size limit of a site. After that, when we save the site as a template, you won’t run into 10M limitation.
stsadm -o setproperty -propertyname max-template-document-size -propertyvalue
50000000
Points to note:
1. The propertyvalue parameter is in bytes, so the example above will increase the
maximum size to approx 50MB.
2. There is a hard limit of 500MB so the value must be less than 524288000 or you
will get an error when saving the site as a template.
The above increases the maximum size of both site and list templates.
Moreover, in my opinion, a template is used to keep “structure” instead of content. So usually when saving a site as a template, I won’t choose the “Include content” option. By content I mean(data uploaded by user such as a document, announcement,pages, etc)