Buy a 32GB iPod Touch, attach a 1TB Airport to your belt clip and HUSH for goodness' sake!! I expected a lot more than a storage update, like 3G, maybe? But I understand that this update is simply to accommodate Apple's movie rentals and other new media services. 8GB have served me well, but with rented movies, music videos, etc., I have found myself doing a lot of media management (swapping out what to sync). So I am a bit pumped by the size increase. Between mp3 and h.264 compression, it's more than sufficient. It's a phone.