Works for me.
Pretty sure 16GB will be plenty for me.
If I'm traveling, I can easily transfer a movie or two over to my ipad. Anything else, I can stream Netflix, Pandora, Hulu+ over wifi, LTE, or even using unlimited Wimax on my Sprint phone. Large files and archives can be accessible over centralized web storage.
This whole "post-pc" concept isn't about raw power and storage -- my desktop or Alienware M14x would run circles around the iPad in performance. It's (in my opinion) about complete mobility and accessibility... I think this is exactly why 4G was a necessity for me and why the big explosion of everything "cloud-based" will put all media, storage, work files, within an arms reach WITHOUT the need for a ton of local storage.
Sure, those who have 64GB storage have the advantage and comfort of extra space; however, I'm simply stating that I won't need it. And this is coming from a complete power user/gadget geek. I game, love music, watch videos, surf the web excessively, have multiple e-mail accounts, read books and magazines, work from home, the office, and abroad as a UNIX admin.
The sweet new screen, internals bump, and most importantly, stable connectivity to the web is going to make this a highly capable device for all types of users -- even with only 16GB.