You just described my life back when Slackware OG was alpha in 1993, but on a 386 PC. 31 years later I never used my EE degree but traveled through all sorts of aspects of IT and IS.
Hyper-V is lightyears behind VMware in all features beyond that free little Player product - that's not even Microsoft or VMware's focus. Thanks, but I'll stick with the leader in bare metal hypervisors for my virtualization.
16GB is very appealing to people who do not use the app store at all. A number of people just use the iPhone as a (gasp!) phone with just calendar and contacts and a bit of email. For such a small segment, that makes the 16GB a logical loss leader to get people who would not ordinarily think of getting an iPhone and who then might go for the 64GB model a year later.