Originally Posted by UncleMike
The use of FAT32 probably has more to do with ease of access using multiple operating systems for when your device is attached to a computer. File system performance was probably a secondary consideration at best.
That's really the only reason its FAT32. Pretty much anything can read it. Even Windows 95. I mean, we have external hard drives formatted in FAT32, even though NTFS, HFS+ and ext4 are far better since they support files larger than 4 GB, among other advantages. However, you lose compatibility when you use these.