Well if Apple can move more people to the plus version then their precious ASP will remain over $ 650+ and they will be able to make 32GB standard - otherwise, they will continue milking users with 16GB
Some people don't want, don't feel comfortable with, a 5.5"+ screen, just as some don't even want a 5" screen. That is the user experience they want. Isn't that what Apple preaches it is about, creating an unparalleled user experience? So why should features be stripped out of a model, where technically possible, just because of the screen size. That is an incredibly haphazard criterion to decide which phone gets what feature. In 2016, 16GB severely inhibits a good user experience for even a basic user. If Apple wants to keep its users it needs to put some meaning behind it's user experience claim. And that is just for starters.