I'm with Max(IT) on this one. I personally won't buy anything but 128GB or higher these days, mostly because I have a lot of music and a few big apps that I don't want to compromise on. That's me though, and I don't think my personal use profile defines the market so precisely that companies shouldn't offer a product I personally wouldn't buy.
I also don't take video, and only a limited number of pictures. If I was like a lot of people and relied on streaming for my music and used my phone mostly for communications and accessing online services, then 16GB would probably suit me just fine.
I don't know the breakdown of sales between the different storage options, so I don't know if the majority are buying 16GB phones or not. The point really is that they don't have to-- there are other options out there. So even if a profitable minority were interested in buying the 16GB version, it is still worth selling-- and the fact that Apple continues offering them is pretty much proof that people want to buy them. You don't dominate the profit share of an industry by selling stuff people don't want. That is the excuse these companies have not to-- people are buying it.
In short, the 16GB device isn't being sold for you-- so stop complaining about it.
If you need more proof that a 16GB device is perfectly functional, look at this complaint:
B4U's company is perfectly happy buying them. B4U would personally like more storage, but assuming they work for a company that deserves to be in business, the company would make a different choice if they felt this decision was hurting their ability to operate.
And this is where I've long suspected the rage against 16GB comes from-- people who don't have the power to make their own purchase decisions. Their parents, or their company, are making the purchase decision and so the only way to get something different is if Apple didn't offer what they're currently being given. That's really the only environment in which this kind of attitude makes any sense at all-- the only time you should care if a company is selling something you don't want to use is if you're being forced to buy it.
Sure, there are a few out there taking the Socialist view that profits are a sin against the proletariat and Apple should be giving according to their ability while we take according to our needs-- but for the most part I think the complaints are the rage of the impotent.