64GB was all I really wanted on a new iPhone.
I could care less about the HD screen (eats battery life and the screen is too small to really make a difference), video chat (over WIFI only and only with other iPhone 4 phones), iAd (really? - they are excited about this as a user FEATURE?

), iBooks (no content - Kindle app much better), gyroscope (probably works about as well as the compass, which is not at all), etc. The only other welcome thing is the camera flash which everyone else had 10 years ago.
This is primarily a MEDIA devices that STORES stuff. I have 100+ GB of music and 100+ GB of video. I also probably have 5+ GB of apps and now with the possibility of HD video recording, a max limit of 32GB is RIDICULOUS.
Many may not need it but many of us do. For those of us who do - Just CHARGE us more for 64GB, darn it - WE'LL PAY MORE FOR IT!
Everyone wins.
I gotta believe that Apple is holding out ONCE AGAIN because they need a killer feature for the iPhone 2011, and that feature will be "capacity". And Apple, goof luck trying to sell people on upgrading on the new iPod Touch's in Septemember without a capacity increase - most like the camera that was excluded last year is going to be the Touch's "killer" feature (i.e. ho hum).
Tony