If I removed the 6 movies from my wifes 32GB ipad she would have roughly 23.5Gb if free space.
I think the 16Gb would be a great seller at $399, as we have seen at the TJMaxx secret sales. Better yet $450 for a 3G 16GB.
If schools are going to be moving their text books onto and issuing ipads, some attractive pricepoint needs to be availalbe..
Apple is already stripping down imacs and airs for education, though the savings are breathtaking.
Something tells me Apple is keeping a very close eye on how much space ipad users consuming and making products to fit.
Now if the line up was 32, 64, 126 GB with the same price points well maybe the 16GB would be obsolete.
Right now apple seems to be able to sell milk to a dairy farmer so whatever they put on the shelves, it will most likely sell.
Keep the 16Gb, put a $399 price tag on it and watch how many kids sudden have an ipad or how many homes become multi ipad homes.