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I would expect the vast majority of it to be free space.

If you bought a laptop with a 250GB hard drive, and found when you booted it that ~125GB were used by the OS, would you be okay with that? Especially when the HD storage was a prominently advertised feature?

Not all of it, but I'd expect more than half of it to be available.

yes, considering the prevailing (up until Surface arrived) advertisements for pads talked about space available, not total space.