I don't feel bad for iOS users. If they really cared, they would hurt Apple where it counts, and switch to Android or Windows Phone devices with 32 - 64GB internal storage and/or microSD slots.
Apple doesn't have a monopoly in the mobile space, and there are plenty of alternatives with much lower pricing. I don't think any consumers were really misled by advertised storage capacity. Most users who aren't aware that a big chunk of internal storage is taken up the OS probably don't even have a frame of reference for how big or small a gigabyte is, or how to manage files.
Updates almost always take up additional space, and I don't think any of the popular mobile OS' are tiny installations - and given what smartphones are capable of these days right out of the box, that's not surprising (though I'm sure there is plenty of bloat to be found). That's more a general lack of knowledge on how computers operate - and let's face it, a smartphone is a computer - than a fault of Apple's.
That said, all these phone manufacturers selling $600+ phones really should be offering 32GB or 64GB with their base flagship offerings. Three of the last four flagship phones I purchased (Lumia Icon, Lumia 1520, HTC One M7) did, and the one that didn't (M8, though I purchased the 32GB version) at least has a microSD card slot, as does the 1520. I don't see that padding Apple's profits is a good reason for them not to make 32GB the base standard.
