I'll start off with a shameless plug; I have a used(slightly damaged but repaired) Tarptent Rainbow for sale here. It's only a one-person tent, and I see you're carrying a two-person now. It makes a nice transitional tent(which is why I bought it) since it sets up and looks like a 'mainstream' tent, but it weighs only 2lbs. You won't be taking it up Shasta or Rainier though. Not built for that.
If you're a large torso, I also have a pretty good all-around backpack for sale cheap It's not the lightest pack for summer, but it's the kind of pack that could go up Shasta and also compact down for smaller, lighter summer loads, and shave 2.5lbs off your base weight. I've taken it snow camping with 45lbs and summer camping with 30(pre-ul). I've just transitioned to a winter pack/summer pack duo.
Now that the self-promotion is out of the way, for an affordable sleeping bag, I owned and really liked the Montbell Spiral Down #3, good to 30 degrees. It's a great Sierra 3-season bag, will knock close to 2.75lbs off, and can often be found on sale. A 20 degree bag/quilt is actually a great all-around Sierra bag, but I don't know of a cheap one. You couldn't go wrong with a Western Mountaineering Versalite if you can afford it and understand it is a slim cut.
I'm not sure how to lighten your pad without spending some money or just going to a CCF pad, which won't be as comfortable. Big Agnes Air Cores can be found cheap, but can get a little cold in lower temps.
If you have foot issues, I can see bringing extra socks, but not the extra top. Merino doesn't smell, which is the point of it. Rinse it in a stream, wear it to dry, and you're good to go.
Why a watch when the nano and GPS would certainly have a clock?
No trowel, use a tent stake.
Too much hand sanitizer. If you can spend a little money, pick up some mini bottles here or on BPL. I carry .25 oz of sanitizer for 4 days and am fine. Only need a drop or two before eating. .25oz BPL bottle weighs .5oz full.
1.7 for toothbrush/paste? I sawed down a TB to .21 oz. I carry a micro bottle of baking soda for paste that weighs .07oz. Baking soda is an acquired or tolerated taste though, so look at Mike C!'s toothpaste dots