yes, they do.... I was just explaining quick, the long version is... they count 10 bits to a byte, 1000 bytes to a kilobyte, 1000 kilobytes to a megabyte and 1000 megabytes to a gigabyte... (instead of 8, 1024, 1024 and 1024)
but i think the more profit thing is balls, there has to be more reason to it than that.... because if it was just to make the drives look bigger for profit, one or more manufactrers would have already exploited it, changed the way they do it and have big adverts about the evil compertition ripping you off
(also, you have to think about the false advertising rules etc...)