The software convention of 1024 bytes per KB is correct, because it is more natural. Decimal-based computers basically ceased to be in the late 1940's. As such, the sizes of hard drives and memory units are best measured in units of 2n
I agree that it's the logical (not natural) way to measure, but then calling it kilo is still plain wrong IMO, since it's the ISO prefix for 1000.
IMO deviating from ISO standards is faulty. By not working with the standards that are in place confusion is caused.