Except for the fact that there are plenty of people who don’t take pictures, don’t store music or media locally, or use a different device (like a Mac) for local file storage and management.
There are also plenty of people, more than you are imagining I’m sure, that literally just use their phone casually for social media and web browsing and as a regular phone. These people are also unlikely to be using anywhere close to 128 GB.
We can argue about upgrade prices, being too expensive, completely agree there. But 128GB is a fine starting storage for a phone or tablet.
And unlike 8 GB of ram, which actually did seem to be falling behind their competitors, 128 GB is right in line with what the vast majority of Android phone manufacturers are selling.
The Brand new Samsung Galaxy S25 just introduced last week… Starts with 128 GB of storage on the regular models. The 256GB starting “Ultra” is actually more expensive than the 256 GB iPhone 16 Pro Max if you can believe it.
And I highly doubt the majority of Samsung users are paying them for any extra storage, yet 128 GB is the default.