Yep. If people are familiar with Redis, it would be much like how Redis periodically rewrites its append-only-file to make it smaller. So you go from a file with full history like

    SET a 2
    SET b 4
    SET a 6
    SET b 10
    SET a 20

to just

    SET a 20
    SET b 10

The snapshot would just retain resulting balances at a certain block height, and no history of how they got there (previous transactions). If people wanted that history it could obviously be archived and accessed separately.