I've always purchased the highest capacity iPhone (8gb 1, 32gb 3GS, 32gb 4) but for the 4GS I'm planning to just get the lowest capacity. I would probably even hop on the 8gb if it was another $100 less. I used to keep my entire music collection on the phone but old songs would keep coming up that I wouldn't really want to listen to so it was actually an annoyance. Recently, I would just keep a playlist of what I really wanted to hear on the phone and cut back on the usage of memory. Spotify/Pandora are enough to provide me with variety when necessary. It also annoys me that you can buy a 32GB microsd card for $30 while Apple continues to charge what they do.