Correct. 32GB is the sweet spot right now, so I'd expect the next gen iPhone to be offered with a base of 16GB and top out at 32GB
I saw news stories like this over a year and a half ago: http://techreport.com/discussions.x/13442
You're telling me they haven't been able to break the 32GB barrier for over a year now? I don't believe it.
EDIT: Maybe the memory development industry moves slowly...considering this just came out a couple days ago: http://www.tomshardware.com/news/samsung-movinand-32gb-flash-memory,7782.html
Crap...I'd still gladly pay more to have a slightly thicker iPhone that had two 32GB chips in it.