It's Apple's fault. Until last year, all capacities were doubles of each other, they should have kept it that way.
I actually think most customers would be happy if the base went to 32GB even if the rest remained the same. Why? Because many users such as myself find 16GB to be too little, but don't need 64GB so they can now function just fine with the 32GB model and save $100. If people need between 32 and 64GB's, the cost and storage is the same as last year, so I don't see how they could be upset as they aren't losing anything.
So now MANY MORE users will buy the low tier phone.
That will hurt profits big time and could trigger a chain reaction to less R&D, less talent, less innovation. You made my point for me.