Isn't it the case that the AZW3 files aren't compressed while EPUBs are (using zip)? After a while that space difference could add up. So comparing Kindles to Kobos is sort of like apples and oranges.
As a test I used calibre and converted an EPUB (no images or fonts) to AZW3; in EPUB it's 556 kb, in AZW3 it's 789 kb.
Another reason for 32 gb could be traveling; you're not sure if you're bringing enough so to be safe you load a boatload of books from Project Gutenberg.
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