I totally agree. I mean, storages both iTunes and iDevices taking up these days are simply nonsense. I had to use 3TB external HDD for iTunes library, which ended up finding out that half of its storage was filled with meaning less outdated datas.
As for iPhone and iPad, I don't expect Apple to put HDD in iDevice again like they did with iPod Classic models, but they need to realize iDevice requires more internal storage then ever with this weird idea of storage management in iOS philosophy. That comes quite hefty especially with newsstands and magazines/newspaper apps. I have a 32GB Retina iPad, and 32GB isn't big enough anymore like they did years back. So did Apple decided to launch or increase the storage for newest iPads? The answer was no. although they did launch 128GB models, but it's simply not worth the price IMO
I honestly think the biggest and newest innovation Apple could do with new iPads and iPhones are double the damn storages and keep the price as it is. iCloud is surely something interesting, but not always working. It isn't as if all the carriers in US are willing to give up free data plans.