No, you're characterizing the argument wrong so you can fight against it. The 16GB issues was about the lowest offered size, and this discussion is about the middle tier.
The lowest offered size was a problem because it's the "base model" that they can use to advertise a low price, but the storage is so low that it's not really usable for most people (and flash storage is really extremely cheap), so it's either a bait-and-switch type of price, or people who buy it get stuck with a difficult to use product.
This issue is that the lack of a 128GB middle tier size forces people to pay a premium for the higher storage, even though they wouldn't want that much space. 64GB is good for many people, but there are also others who would do very well at 128GB, but don't currently have that option, so it forces them to the 256GB tier.