Most people do not realize why they have run out of space suddenly. They don't even know what difference will it make if the default storage is 32 GB. Quite a few of the iPhones are gifted by friends and family. So people tend to gift lowest tier to save money.But I thought the argument is that nobody wanted 16GB, and it will ruin Apple's sales/business.
So which is it?
The real argument is that having 16 GB entry level model in 2016 is damn sneaky move bordering unethical only because people have this blind faith in everything Apple does. It's Apple so it has to be good right? The Apple store employees are also trained to convince/force 16GB purchasers to opt for iCloud subscription.
It is a damn great business strategy. We at Macrumors can critically analyze it and comment on it. But regular joe is indifferent to it.