When you initialized your Drobo you must have told it to "pretend' that it has 16TB which is the Max default setting I believe. That's how the Drobo works so that it can expand the storage space without causing your computer to reformat it when you add additional or larger capacity drives. The Drobo lights will tell you when it's getting full. Also the Drobo dashboard utility will tell you how much is actually being used.
I have my Drobo formatted to 16TB as well and I only have 2 1.5TB drives in it. However, I don't have it connected to my Pogoplug. Each light on the bottom of the Drobo indicates 10% utilization of the current capacity installed in the Drobo.
If the Drobo didn't work that way then you'd have to reformat the entire Drobo losing all of your files each time you added capacity. The limitation is not with Drobo but with the computer OS which typically can't adapt to a drive changing sizes on the fly.
One word of warning though is Don't let the Drobo fill up because it will likely then corrupt your drives and you could lose everything stored on it. Pay attention to those lights and when it "asks" for additional storage then feed it another drive.
-Mike

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