Before flaming Windows about wasting that space on the disk, you should understand a bit about how pretty much all filesystems manage space on hard disks.
The "smallest" addressable lump of space on a HDD is a sector (often 512 bytes), and you cannot read or write smaller than that. If you want to write one byte in a sector, you must read the sector, modify the byte, and write the sector back. That's how the physics/electronics work. A "block" is usually one or more sectors, and represents the smallest chunk of space that the filesystem will allocate for a file. Old DOS "FAT-Based" filesystems increased the block size as disk size increased.
For many reasons, filesystems prefer NOT to have multiple files sharing the same sector. Imagine if you want to make a file a little longer - that "wasted space" at the end of the sector can be used, before additional sectors are allocated to make the file bigger.
And, while it's theoretically possible to have a filesystem which can allocate disk files on a per byte (or even, per-bit) basis, the amount of housekeeping storage on disk to keep track of this would rocket and probably outweigh any advantages you might have gained. And the performance would likely by very poor...