How to reduce system data usage on iPad for more storage?

First, perhaps understand the Apple Support Community is a user-to-user technical forum. Contributors here are all end-users, just like you. Other than the site Moderators, Apple neither monitor nor participate here. As such, if you hope to reach Apple Support through these forums, you will be disappointed.

Should you need to do so, you can contact the Apple Support Team using the Support link at top-right or bottom-left of this page. Alternatively, you can initiate and manage your support cases from Apple devices using the excellent Apple Support App. If not already installed, the App can be downloaded from the App Store:

https://apps.apple.com/app/apple-support/id1130498044

It is generally recommended that you maintain at least 4-6GB of free space at all times - as your iPad needs some temporary space to complete some tasks - such as performing system software updates.

A system software update requires sufficient space to be downloaded, unpacked and verified prior to installation - major version updates (such as updating from iPadOS 17.x to iPadOS 18) requiring considerably more space than an incremental point-update. After the update is successfully completed, temporary files are automatically deleted - returning free space.

If your internal storage is full, or is insufficient for the task that you need to perform, your only option is to better manage the storage that you have - and delete unused Apps or unneeded data. 

These support pages should prove to be helpful:

About storage on your device and in iCloud – Apple Support

What's the difference between device storage and iCloud storage? – Apple Support

Manage your iCloud storage – Apple Support

How to check the storage on your iPhone, iPad and iPod touch – Apple Support

Clear Other storage on your iPhone or iPad - Apple Support

“Offloading” Apps can be a helpful method of creating temporary space for a software update.

https://9to5mac.com/2020/01/21/how-to-offload-apps-in-ios-to-save-space-without-deleting-their-data/

Additional information about creating sufficient space for installation of a software update can be found here:

If you need more space for an update on your iPhone, iPad, or iPod touch - Apple Support

If your iPad is capable of update to a more recent version of iOS/iPadOS than is currently installed, these support pages outline both the available methods by which the update can be performed - and troubleshooting should you experience difficulties:

Update your iPhone, iPad or iPod touch – Apple Support

If you can't update or restore your iPhone, iPad or iPod touch – Apple Support

If your iPhone, iPad or iPod touch won’t update - Apple Support

iOS update and restore errors – Apple Support

Be aware that while an iPad may be capable of update, in some circumstances you may need to use a computer to perform the update*. To do so, you will need access to either a Windows PC (with iTunes for Windows installed - or the more recent Apple Devices App) or a Mac (with iTunes or Finder - as appropriate for the installed version of MacOS). Ensure that your installed version of iTunes has been updated to the most recent version; the essential device drivers are included.

Download and use iTunes for Windows – Apple Support

Update to the latest version of iTunes – Apple Support

Update software on iPhone, iPad or iPod touch in iTunes on PC - Apple Support

Update your iPhone, iPad, or iPod touch with the Finder - Apple Support

Apple Devices App (Windows PC):

https://apps.microsoft.com/detail/9np83lwlpz9k?hl=en-ms&gl=MS

(*) If you don’t have access to a suitable computer of your own, that of a helpful friend or family member will suffice. Alternatively, the technicians at the Genius Bar of your local Apple Store or Apple Authorised Service Provider (AASP) will be delighted to assist.

Genius Bar Reservation and Apple Support Options - Apple

If you have a beta profile installed, ensure this has been removed from your iPad - as, otherwise, installation of production software updates may be inhibited. This support page provides the necessary information to remove the beta from your iPad:

How to uninstall iOS beta software - Apple Support

You should note that for your iPad to install an available update, its battery must be charged to at least 50% capacity - and/or be connected to its Power Adapter. Similarly, the iPad can only be updated over a standard WiFi connection - or be updated by a PC or Mac using iTunes or Finder - over a USB connection.

If you have deleted files or photos from your iPad, check that you have also deleted files from the corresponding Recently Deleted folder. Deletion initially moves files to a folder from which they can be recovered - but until such time as they are also removed from the Recently Deleted folder, deleted files will continue to occupy space on your device.

I wasn't suggesting that you need a device with 512GB or more internal storage, merely that devices with greater storage are less problematic longer term if you intend to save data locally on your device instead of external storage options. This is true of any computer, Apple or otherwise, if you have insufficient on-device storage.

While devices with minimal internal storage may be attractive from the perspective of initial purchase price, they may not be the best choice. iPad models with minimal storage are primarily intended for Educational/Business environments where the user does not need or intend to store significant amounts of files/documents or other data on the device itself.

As for your difficulty updating your iPad, I have already provided multiple strategies to update your iPad where you have insufficient local storage. In extremis, you might back-up your iPad to iCloud - then erase the iPad. Once backed-up and erased, perform the system software update - then restore your iCloud backup to the iPad.

Purchasing an iPad with minimal internal storage is rarely a good idea.

When choosing an iPad, you would be well advised to purchase as much internal storage as your budget might reasonably allow - as internal storage (and other hardware) cannot be changed, upgraded or extended. The available internal storage is fixed for the entire life of the device. If you run out of internal storage for your documents, photos and other data, you will forever struggle and become a source of frustration. It is far better to have more storage than you need, than to need more storage than you have.

A good rule of thumb is to quantify how much data storage you will need - add a healthy margin - then double it. If you are unable to quantify your data storage needs, it becomes more difficult. Whilst I and others cannot make definitive recommendations for your personal needs, objectively I would council against purchase of any iPad with any less than 256GB storage, 512GB and higher having a greater margin for growth.

Within the Apple Support Communities we see regular tales of woe and disappointment when storage requirements are exceeded, necessitating replacement of the device; by contrast, we never see complaint of having too much available storage. It is relatively easy to fill limited internal storage space; perhaps consider higher tiers of storage as providing room for growth as your needs develop or mature - potentially extending the useful usable life of the device. 

does anyone actually have an answer to the question?