Earlier quoted context omitted.
Thats what holding me back from upgrading and I have 32gb 4s. Plus it just doesn't seem that compelling and upgrade. Makes one wonder the 16-64-128 gb storage strategy.
You don't need the on board space if you upgrade through iTunes. It's a drag, considering OTA updates have been a big push since iOS 5, but it avoids the issue of trying to clear out 5 GB of space.
I haven't upgraded my iPod and iPad precisely because of the space issue. Looks like I won't be upgrading.