Who buys 16GB iPhones?
1. Corporations - they don't want their employees to load up unnecessary apps, photos, videos on company phones.
2. Teenagers/Kids - they use their phones mostly for texting and pictures. They take very little video. They don't buy music or movies. They stream everything.
3. Slim users - they don't buy music, videos, ect. They like to keep their phone clutter free. They don't take many pictures and if they do they just save it on the cloud. I consider myself a slim user. I use my phone ALOT. But mostly for streaming movies, tv shows, music, web browsing. I don't buy music. I have photos but I only keep the good ones. There really is no reason to have 10,000 photos on your phone. That's what the cloud and home servers are for.