to clarify, memory is not reserved... address space is reserved. i.e., address of first 2GB is reserved to kernel.
there are few operating system concepts like memory addressing, paging etc... you need to understand to get clear picture.
so in a nut shell, even in 64bit os half of the address space is reserved for kernel, but 2^64 is something close to 16 exabytes. so you have a lot of address space available. exabyte is kb->mb->gb->tb->petabyte->exabyte.
basically you have something known as address bus, a data bus and general purpose registers on computers. operating systems are written accordingly. if you want to read a byte from memory into a register you will need an address. so basically in 32bit system, you will specify the 32bit address and a 32bit register to fetch the value, anything less than 32bit or anything more need shift operations on the registers which take up cpu cycles. So when you are specifying an address on 32bit processor you cannot specify more than 4GB adress so with PAE you will need some extra operations to get to greater than 4G address.
from history if you ever known DOS3.2, the max system ram was about 640kb due to the 16bit limitation.