I read that ETH 2.0 staking with 32 ETH requires users running a full node on their server. But doesn't a full node take up 500+ GB of space? What are the proposed system requirements?
Currently a default full node takes around 200GB of space: https://etherscan.io/chartsync/chaindefault . It makes sense that you need a full node to stake in Eth 2.0.
I doubt anyone really knows at this stage how much space a full node requires in Eth2.0 - that's not a particularly aspect at this phase of the development when we are still far from the full Eth2.0 launch (Phase 2). In theory I imagine it should be less than nowadays as you only need information about your own shard. And as for other system requirements it's probably quite similar to the requirement today.