It would seem that Vaseline-coated cotton balls are easy to carry - some stuff them in large straws (I think McD's has large straws), and, if you need Vaseline on your lips, just wipe a cotton ball on them.

In general the plan is to have the survival kit items as ready-to-go as is - rather than having to coat tinder (cotton balls?) with goo. Besides, at least in winter, I almost always have a stick of Blistex in my pocket. Its really dry in the midwest U.S.

Regarding the Ritter PSP - it already comes with 4 Tinder-Quik balls. It would seem that the limited space is better used up with other gear - BIC, LED light, purification tablets, ...