I am also facing the same issue, I have deleted many photos but still the storage is full and apple is not allowing me to transfer my files to my laptop and recently it has disable the provision to show my iphone icon when i connect it to my system. Few days back when the icon is visible and i could able to transfer my photos, suddenly a pop up window will appear stating " system cannot find the device "
The above action from Apple.inc purely says that they wanted us to pay for the storage and will not allow us to transfer our personal files to our system
I am using Iphone from 2012 onwards, first purchased 4s and now having 7plus, I will never buy I phone hereafter and will not recommend to anyone.
Many of my friends are facing this issue, its is a shameful act of Apple, you should not do this to your customer.