That said, I certainly think the 16gb model would be just fine for a segment of users.
For work issued phones and certain consumers that just don't care. My mother for example, or even some peers I've talked to that don't even know how much space they had. They use their phone to call, text, quick web searches and smaller apps like Instagram/Facebook. 16GB is plenty. My mother has 9 GB left.
I'm not justifying the 16GB. It's obviously a move to push users into a more expensive model, however, it isn't as detrimental as some here think.