Hard drives dont actually lose any space*, its just marketting spin. There are two "standard" names for data capacities. JEDEC recommend using Kilobyte as 1024 bytes, IEC on the other hand say that SI names (Kilo/Mega etc) are always 1000's.
As saying 1GB in 1000's increases the number thats just what the hard drive makers do.
SI/IEC actually think the computer industry should use KibiByte, MebiBytes. Personally I think it looks wrong on paper, and sounds ridiculous spoken. It's also rather ridiculous considering the underlying structure (the 8 bit byte) is a binary structure in the first place. It would have made just as much sence to say 1KB is 1000 x 10 bit words, it has just as much use for current binary computers (ie none at all), and of course it would have hurt the marketting of hard drives as 1000x 10 would have put 1KB at 10000 bits, while 1024x8 = 8192.
Perhaps its just a pet hate of mine, but im sticking with Kilo/Mega/Giga when talking about computer binary powers.
Hard drive makers picked up on this very early, 10meg drives were 10,000 byte capacity, but back then with MFM, and RLL formatting systems, I believe most hard drive makers did blame "formatting" on the space reduction.
* Ok a tiny amount of space is allocated to the boot sector, partition table, and the directory/file structures, but this is minor compared to the KB/KiB nonsense.