docs: Update CHANGELOG.md for v1.1.0 release

- Reorganize l10n system improvements as features, not fixes
- Move notification optimizations to Added section (new functionality)
- Maintain CSS nth-child fix in Fixed section (legitimate bug resolution)
- Clean up structure and remove inappropriate 'Fixed' categorization
- Prepare comprehensive changelog for v1.1.0 release

Author: miguelcolmenares

CHANGELOG.md

@@ -9,6 +9,7 @@ Check [Keep a Changelog](http://keepachangelog.com/) for recommendations on how
 ## [1.1.0] - 2025-10-17
 
 ### Added
+
 - **Size Reduction Statistics**: Display percentage of size reduction and file sizes after minification
   - Shows original and minified file sizes in human-readable format (KB or B)
   - Calculates and displays percentage of size reduction
@@ -31,16 +32,38 @@ Check [Keep a Changelog](http://keepachangelog.com/) for recommendations on how
 - Comprehensive i18n test suite with 20+ tests
 - i18n architecture documentation (docs/INTERNATIONALIZATION.md)
 - VS Code task for running i18n tests separately
+- Custom fallback l10n system with manual JSON loading for reliability
+- Parameter substitution support for all translated messages
+- Notification system optimization to prevent double notifications
+- **Package Size Optimization**: Implemented aggressive optimization reducing package size by 96.8%
+  - Extension package size reduced from ~1.46 MB to 47.37 KB
+  - Excluded demo/documentation GIFs (~1.4 MB) via .vscodeignore optimization
+  - Optimized icon.png with oxipng (41KB → 22KB, 46% reduction) while preserving quality
+  - Maintained full functionality and complete 7-language i18n support
+  - Added package optimization guidelines to developer documentation
 
 ### Changed
+
 - All hardcoded user-facing strings replaced with l10n.t() calls
 - Error messages now support parameter interpolation
 - Success notifications now properly internationalized
 - README updated with language support information
+- **Optimized Extension Packaging**: Enhanced .vscodeignore configuration for minimal package size
+  - Excluded heavy assets while preserving all user-facing functionality
+  - Documented optimization workflow for future maintainers
+  - Established package size monitoring practices
+
+### Fixed
+
+- **CSS nth-child Selector Minification**: ✅ **FULLY RESOLVED**
+  - nth-child selectors now minify correctly with 41% size reduction
+  - Comprehensive test coverage for complex nth-child patterns
+  - Mathematical expressions, selector filtering, and complex combinations work perfectly
 
 ## [1.0.0] - 2025-10-16
 
 ### Added
+
 - Complete modular architecture with separation of concerns
 - Comprehensive JSDoc documentation across all modules  
 - Issue #5 resolution: autoOpenNewFile configuration option
@@ -52,6 +75,7 @@ Check [Keep a Changelog](http://keepachangelog.com/) for recommendations on how
 - i18n documentation and translation maintenance guidelines
 
 ### Changed
+
 - **BREAKING REFACTOR**: Restructured codebase into modular architecture
   - `src/commands/`: Command handlers and core business logic
   - `src/services/`: External API integration and file operations
@@ -65,44 +89,37 @@ Check [Keep a Changelog](http://keepachangelog.com/) for recommendations on how
 - Updated project documentation with modular architecture details
 
 ### Fixed
+
 - Issue #5: Minify on save now respects minifyInNewFile configuration
-### Issue #1: CSS nth-child Selector Minification\n- **Status**: ✅ **FULLY RESOLVED** - nth-child selectors minify correctly\n- **Root Cause**: Previous architectural improvements resolved underlying API issues\n- **Verification**: Independent testing confirms 41% size reduction (479→279 characters)\n- **Test Coverage**: Comprehensive test suite with complex nth-child patterns\n- **Validation**: Mathematical expressions, selector filtering, and complex combinations work perfectly
+- **CSS nth-child Selector Minification**: Previous architectural improvements resolved underlying API issues
 - Timeout issues during API calls with proper Promise.race implementation
 - Silent failures now show appropriate user error messages
 - File size validation prevents 413 HTTP errors for large files
 - Eliminated code duplication between minify commands
 - Improved code reusability and maintainability
 - Enhanced documentation standards across all modules
 
-### New Features
+### Technical Improvements
 
 - **Robust Timeout Handling**: Added 5000ms timeout for API calls with Promise.race pattern
   - Handles API responses observed up to 1100ms in performance testing
   - Specific error messages for timeout vs connectivity issues
   - Improved user experience with clear, actionable error feedback
   - Graceful degradation when external APIs are slow or unresponsive
-
 - **Enhanced API Error Handling**: Comprehensive error handling based on updated Toptal API documentation
   - **File Size Validation**: Pre-request validation for 5MB maximum file size limit
   - **HTTP Status Code Handling**: Specific user messages for all API error codes (400, 405, 406, 413, 422, 429)
   - **JSON Error Parsing**: Extracts detailed error messages from API JSON responses when available
   - **Rate Limit Awareness**: Clear messaging when hitting 30 requests/minute limit
   - **Syntax Error Details**: Informative feedback for CSS/JavaScript syntax errors with precise error descriptions
-
-### Bug Fixes
-
 - **Fixed Minify on Save**: Resolved issue where minify on save didn't respect `minifyInNewFile` configuration
   - Now properly creates new files when `minifyInNewFile: true` is set
   - Maintains in-place minification when `minifyInNewFile: false` (default behavior)
   - Respects all user configuration settings during auto-minification on save
-
 - **New Configuration Option**: Added `autoOpenNewFile` setting to control file opening behavior
   - When `true` (default): Newly created minified files open automatically in editor
   - When `false`: Files are created silently without opening, reducing editor clutter
   - Addresses user request for less intrusive minification workflow
-
-### Technical Improvements
-
 - Migrate to ESLint v9 flat config for better compatibility
 - Optimize GitHub Actions cache strategy across all workflows
 - Optimize CodeQL execution to run only on PRs and weekly schedule