troy14 you are right on the money. I think its funny reading the comments of all those making excuses for Apple, like they are on the marketing payroll. A 16gb 5s has 12.83gb of useable storage initially. With ios 8 being even bigger than ios 7, that will probably decrease. The camera resolution has and will only increase meaning that photos and videos consume more space, not less. You throw a few games on there, and lets not forget the 'ever so reliable' "other" category storage leakage. Throw some albums on there(cause yea it is an ipod) and you will burn through 16gb in no time. Those who have the 16gb 4's & 5's know that 16gb is nowhere near enough storage. Apple knows this too, which is why 32gb was not the base. Amazing how these Apple can do no wrong advocates are saying "you're getting a bonus", when every flagship Android phone released since May has had a base of 32gb of storage(not to mention that storage can be expanded another 32gb for as cheap as $20 with an sd card). Apple is all about profit, not the consumers, and as long as people keep excusing this behavior they will continue to screw over the consumer.
Apple is all about profit? ALL companies are all about profit. That's why they exist. Don't think for a second that those other companies wouldn't do exactly the same thing if they could. Is it greedy? Yes, but unfortunately that's just how capitalism works.