You can’t shrink a ZFS pool unfortunately.
What you may be able to do though is enable TRIM on it so it may release some used space back.
You’ll need the ZFS tools, then you should be able to do:
zpool set default autotrim on
zpool trim default
This may take a little while, zpool status should give you some indication of it happening, then look at your default.img and hopefully it will be quite a bit smaller.
Ok my main concern is full backup of LXD
/var/snap/lxd/common/lxd size is about 1GB without default.img 28GB
IMHO those image based pools should be placed outside of /var/snap/lxd/common/lxd
Is there a safe way to remove this default zpool from within LXD?
You can name the pool whatever you want, but LXD needs to have a storage pool for instances to be stored on.
A pool can be backed by a physical disk/partition or consume a dataset from an existing ZFS pool on the system, all of this can be done through lxd init too.