Well, it's possible the on board storage holds the Garmin/Navigon map database used by the navigation system. I may have read this in a
@wk057 post a couple of years ago.
Part of the on board storage is used for the Garmin/Navigon navigation data.
When the first orders for the Model S were placed, in addition to using the on board storage for navigation data, Tesla also promised to provide some of that storage for use by the media player for songs - included with the Premium Sound upgrade.
A feature they later withdrew. It seems unlikely the Garmin data has grown much in size since 2012 - though with inexpensive USB memory devices, there really isn't a need for on board music storage...
Tesla could be significantly more intelligent about the use of on board navigation/map storage. Instead of storing the entire Garmin/Navigon map database for the continent (US cars likely have US/Mexico/Canada), the software could store the map data needed by the car for the surrounding region (500 mile radius?) and access a cloud server to download additional map data when a route was being planned outside of the nearby region.
Doing this would significantly reduce the amount of storage for the map data, freeing up space for other usage. Plus, if the map data is reduced, that could enable distribution of more frequent map updates, to help keep the "offline" navigation maps more up to date (instead of typically being 1 to 2 years out of date).
Plus, with additional free on board storage, the software should store the Google map data for the surrounding region, and only update those map fragments when needed (when there are road changes, which don't happen that often, and only affect a very, very small percentage of the map data).
Though... I suspect that to support FSD, Tesla could shift to using a cloud server for calculating the navigation route - so FSD always has up-to-date maps, completely avoiding the challenge of keeping the on board maps up to data in all cars.