I don\'t know very well about RAM and HDD architecture, or how electronics deals with chunks of memory, but this always triggered my curiosity: Why did we choose to stop at 8 bi
Historical reasons, I suppose. 8 is a power of 2, 2^2 is 4 and 2^4 = 16 is far too little for most purposes, and 16 (the next power of two) bit hardware came much later.
But the main reason, I suspect, is the fact that they had 8 bit microprocessors, then 16 bit microprocessors, whose words could very well be represented as 2 octets, and so on. You know, historical cruft and backward compability etc.
Another, similarily pragmatic reason against "scaling down": If we'd, say, use 4 bits as one word, we would basically get only half the troughtput compared with 8 bit. Aside from overflowing much faster.
You can always squeeze e.g. 2 numbers in the range 0..15 in one octet... you just have to extract them by hand. But unless you have, like, gazillions of data sets to keep in memory side-by-side, this isn't worth the effort.