Going further, even the prompt to "delete and then re-download apps due to insufficient space for OS upgrade" seems unnecessary, as if revealing an unimportant implementation detail. Why can't it just automatically do the right thing? I won't mind if the app is missing from my iPhone for a couple of minutes. If the reason is bandwidth, perhaps it could say "we'll do this on wi-fi only."
Similarly, I wish purchased iTunes media started working the "streaming" way, too. I don't want the TV show to take up Gbs of disk space, don't particularly care for the physical file present on my disk. Could still have an opt-in "use offline" option for those who need it.
Or are these all issues to appease people who want to feel like they "own" content (apps, media, etc.)?