Just got our first iPhone. Question about 8 disappearing

Got an iPhone 5s from Sprint.  It has iOS 7.  I made the mistake of having it plugged in while it was on WiFi and it downloaded 8 but we didn't install it.  Don't remember if it was 8 or the 8.0.1.  Anyway the d/l took up 4gb out of the 12 that was available.  I just noticed that I have 12gb back and available and 8 is no longer showing anywhere.  I read that Apple recalled the update?  Is that what happened to me since I hadn't installed it?  Did they actually delete it from my iPhone?  Now there's a message saying to get 8.0.2 but it says Download and Install not just install.  If I never do it will the flag eventually go away?

Yes. It is possible. Just sign in to your Apple ID on both of your iPhones in the App Store.

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