Yes. The repository is only their for convenience. The actual size of the "bootloader" of Activator is something like 2Mb. If you delete the "repository" directory from the activator zip, then everything will still work, but dependencies will be downloaded on demand.
Another hidden feature is if you download a particular template from the website (see go to http://typesafe.com/activator/template/activator-akka-spray and click the download link), you'll get a a launcher for activator which is standalone.
The activator.bat
/activator
/activator-launcher-<version>.jar
files are the only portion of the distribution you really need to run.