You really don't get it do you?
The base price isn't about storage, its about features.
You, like many others here are looking at the phone based on storage. Storage is not the primary reason people buy an iPhone. They buy it for what it can do. Then......if you're the user that needs more storage you can pay for it.
It would be ripping people off to make them pay for storage they don't need.
I'd bet that a very large percentage of iPhone owners do just fine with 16g (which as posted above will still store a ton of photos)
Again again again missing the point. The point is that storage matters to many people. MANY people. It doesn't matter that some people don't use the storage, having more storage than they need (at the same price they already pay) or getting the same storage for less IS AN ADVANTAGE. If Apple put customer experience first it would do this, giving those who need more storage on a budget their extra storage, and those who don't, the same amount of storage for a lower price, or more storage that doesn't impact on them negatively for the SAME PRICE.
I am looking at the phone based on storage because that is what the argument is about. We're not talking features here. The argument is that apple is ripping people off by offering a sub par base model phone. As simple as that. The BEST iPhone experience comes when people are NOT running out of storage space, and a bump to 32GB at no extra price to the customer would deliver that.
Sure a large number of people don't need storage, however your average young person (for example) with an iPhone has music, has photos has videos and has any number of other things. You ignore the fact that the iPhone is one of the most wildly used cameras and video cameras.