I believe Hippy at some time posted I2C bit-banged code that could be used on a 08M. I also remember reading an apps note for the Basic Stamp which describes bit-banged I2C in detail, and which could easily be ported to the Picaxe. The problem is that once you have that code there isn't much program memory left for anything else.
If size is a concern, maybe a surface-mount 18X would fit the bill? It has native I2C and at the same time offers much more program memory. The SMT version is a SOIC package which actually isn't that difficult to solder, but doesn't take much more space than a DIP packaged 08M.
Wolfgang