I'd go looking for a new front derailleur. Are you locked into a certain brand/model because if indexing issues? I am a little out of touch with the new stuff, I have never seen a derailleur that takes more than half the space yours takes. Usually the cable attachment and arm (I see you have a wheel for the cable; again a new one to me) is far enough to the right that the tire does not interfere.

A possibility would be to replace the front derailleur with a different brand of old style design and run a down tube or bar-end friction shifter for it (if you cannot find the matching index shifter). The was a famous bike racer who used to set his very high end bikes that way for key Tour de France mountain stages to save weight.

I've run rear tires so close to the seattube that I have had to cut a rectangle in the fender to accommodate the FD clamp. This with a derailleur like I was a talking about. (Edit: the cable ran under the BB on that bike. Cable and derailleur were completely clear of the fender and nowhere near the tire.) There are thousands of those derailleurs lying around.

Ben