why does Ubuntu need so large a USB stick?

[D. Hugh Redelmeier]

I've downloaded Ubuntu 10.10 desktop .iso files and am reading the 
directions for making a bootable USB flash memory from them.

The first thing it says is:

	Insert a USB stick with at least 2GB of free 
	space

Why does it need 2GB when the .iso is only 728754176 bytes?

Perhaps the .iso is compressed and the USB is not, but that would seem
dumb.

Why does it say "2GB free"?  Does it preserve the existing content?
If so, surely there must be a limitation on what filesystems are
supported and this isn't mentioned.
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