I read somewhere that Apple has made adjustments that will still allow an over the air update, even if memory is low.
You are preaching to the choir as I see nothing wrong with a 16GB phone for those who want it. This comes up every time new phones come out. I always get the 128 but know several people who the 16GB iPhone suits them fine!
It used to not be that much of an issue. I'm not a power user nor do I snap a ton of pictures. However, with a few apps and a bit of picture taking, I've creeped up to the 16GB limit. I've always been a 16GB buyer, but with how the app store has changed and how much larger pictures and video are I'm finding the 16GB model to be unacceptable. So the problem comes in when I try to do the exact same things I used to do on the older model now requires a $100 premium. Apple should at least stay in step with what people used to previously be able to do on their phones instead of making them climb the price ladder as the tech improves but the capacities are stifled. For me, they lost a sale this year. For people that are bumping into memory issues but are not tech savvy, it is a large annoyance. Apple is supposed to be about ease of use and not worrying about the technical aspects of a phone, yet even non-power users are now going to start getting warnings about memory issues.
Now was the time to do the jump to a 32GB base model.