A 60 GB C: drive is totally normal. As I want to have all installed software being included in my system images thus installing all apps and programs on C:, mine is ATM almost 100 GB on this laptop's fairly new (about one month) installation.
About the size of the AppData, here's an interesting example:
First some background: As you might know, installing Windows on a virtual machine takes less space than the exactly same installation on a physical computer. This is due the file system and how Windows handles virtual hard disks.
I have a Windows 7 Professional installed on a Windows 8.1 Hyper-V virtual machine, installed just a few weeks ago. It's almost virgin, "empty", I mean I have only installed Windows Virtual PC and XP Mode on this virtual machine, absolutely nothing else. I only used the virtual machine once, to create some screenshots for a post about installing and setting up XP Mode. The Windows 7 Pro vm contains nothing else, is never been used except that one time, contains no personal stuff. I launched it just now for the second time in its short life.
Yet, the AppData is 2.7 GB. I repeat: a completely "empty" new installation, nothing installed but AppData is already a bit under 3 GB:
The same folder would take about 3 to 3.1 GB on a physical installation.
When considering your options when reinstalling, remember this: Using sysprep in relocating Users and Programdata, it only needs to be done once, and it takes care of completely moving the entire Users and ProgramData folders including all their subfolders, for example AppData. It also does this at once for every existing user account on your computer, plus for every user account that will be created in the future, as the environment variable which is changed automatically takes care of that all future accounts and all their subfolders will be created on a new location.
Doing it manually means you have to do it manually folder by folder, for each existing user account plus for each user account you will create in the future, still leaving for instance AppData on C:. The more user accounts you are and will be using, the more work you have.
Kari