This has to be the most boneheaded move Apple has made in the past 20 years. Seriously.
I wonder how much pay-off they got from the HD manufacturers? Maybe they want their iPods to appear bigger because they'd already started using base 10 even for flash.
I hope there's a default setting somewhere to alter this. It's almost enough reason not to update to Snow Leopard.
EDIT: I feel strongly enough about the stupidity of this change that I just have to say that the person responsible for the idea is a total fucktard.