I really wish Apple would put in a separate flash chip just for the OS and updates. There's plenty space with the bigger iPhones and flash is cheap.
Well that's sort of the point in this feature! If Spotify is using 8GB of local storage and you can't do an OS update, then it'll zap it to free up space. Otherwise, you can manually free up space yourself. It isn't being enforced on you, it's just a way around low storage space and OS updates.
Also: think about stuff like Spotify. It is the largest app I have on my phone (currently ~8GB). I have all of that music saved offline for listening on the subway. If Apple blows away Spotify and reinstalls it... I now have a chore ahead of me to re-download many hundreds of songs.
I don't see this being all that popular of an option...
Well that's sort of the point in this feature! If Spotify is using 8GB of local storage and you can't do an OS update, then it'll zap it to free up space. Otherwise, you can manually free up space yourself. It isn't being enforced on you, it's just a way around low storage space and OS updates.