All you "iTunes in the cloud means I don't need storage" people who crop up in every thread...
Do you have unlimited data plans, and never leave good coverage? If not, are you home all the time on Wi-Fi? Do you never fly in an airplane?
The "cloud" is slow, subject to network coverage and can cost you money in data overages. Local storage, once you have it, is free to access and instant. Nothing can replace local storage unless you sit at home all the time on Wi-Fi and have a really fast Internet connection. And at that point, why not just use your computer?
More storage options are good. Stop complaining about it as if Apple should never offer bigger devices; imagine if they'd stopped at 32GB and said "duhhh, use the cloud"? Life would suck for many, including myself.