But now they have a lot of people bitching about how the phone doesn't have LTE so it's not like it was known it'd be a total slam dunk. I'm a T-Mobile customer in the US though so i don't worry about stuff like that. ;)
What do you use all that space for on a phone? My Android phone (HTC Evo 4G) has 512MB internal storage and the Android version it runs doesn't support moving most apps and their data to an SD card. I still have all the apps I want. I still listen to my entire multi-gigabyte music collection... by streaming it through Amazon MP3 for free. Everything's streaming or in the cloud these days. You don't need to carry duplicate copies in your pocket.
I am somewhat obsessed with music, and these days, 16 gigabytes isn't really that much. Yes, you can stream it with spotify and google play, but that always fails when you least want it to. I wouldn't buy a phone these days with less than 64 gigabytes.
I realize I'm also somewhat unusual in this respect.
You'd be surprised. Many games, these days, can take up to 1GB for program and data files. My iPhone 4 with 16GB was so maxed out, it'd often refuse to upgrade more than one app at a time because of insufficient space.
The 16GB is the cheapest option for a very fashionable phone. So no doubt it's popular. My wife has the 16 and I have the 32, figuring we'd never max out the memory in either case. Boy, were we wrong. She can't update more than a few apps at a time. I'm down to the last few GBs and even after purging videos and photos. Music isn't even a problem because we have iTunes Match so it purges things regularly.
The size of the retina apps is just insane. I compiled my first app (a small music app) around the time the 3GS came out and it was only 1MB. Now, even a simple game clocks in at 30MB.