Matt,
Yes, many people (if they do not need the t-logs) will reduce them. In 3.0 (during install) you can actually set it to SIMPLE mode instead of the more full recovery mode. I do that on most all of my boxes. Prior to CPO 3.0 you would have to do it like you show above.
On most of my pre 3.0 boxes I would do something like
USE <TEOProcess_DB_Name>;GO
-- Truncate the log by changing the database recovery model to SIMPLE.
ALTER DATABASE <TEOProces_DB_Name> SET RECOVERY SIMPLE;GO
-- Shrink the truncated log file to 1000MB.
DBCC SHRINKFILE ("<TEOProcess_log_file_name>", 1000); GO
Of course this is on SQL only. You can find more information on DBCC Shrinkfile at Microsoft's help site.
If you need to reset the database to full mode it's:
-- Reset the database recovery model.
ALTER DATABASE <TEOProcess_DB_Name> SET RECOVERY FULL;GO
--Shaun
--Shaun Roberts
Principal Engineer, CX
shaurobe@cisco.com