I've had a few people ask me about this, and I've been interested in it for some time myself. Finally, its done..
It was a simple task to port buildroot-ng's busybox 1.2.1 and patches to a White Russian compatible package. The result is in the X-Wrt package repository and svn source repository. It seems to perform quite well, though the applet configuration needs a little adjustment still since it doesn't match up perfectly with White Russian's busybox 1.0.0 applet config (I've included too many things). I'll periodically make new releases that have a more ideal applet configuration.
Busybox 1.2.1 adds numerous features and bug fixes over Busybox 1.0.0 used in White Russian RC5 and RC6. It does not add any bloat afaik, as they keep a close eye on such things.
I do not recommend anyone go ipkg upgrade or install this, particularly on squashfs images... though I suppose you could. It's really meant for use with the image builder. It will be included by default on all pre-built images of OpenWrt distributed by the X-Wrt project.
The obvious question is why keep updating White Russian?? In fact, the answer is that I am not going to continue to do this indefinitely. Buildroot-ng is indeed the future.
X-Wrt stuff is here: http://developer.berlios.de/projects/xwrt/ . You'll find the package repository in the ftp area and the source repository in the svn area.