I owned a 16GB iPad 1 since launch, and now I own a 16GB iPad 2. For my purposes, I have more than enough space. It really depends on how you use it.
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Going to get the 16gb as that's all I can afford hopefully I dont have regrets.
Also how much is it of actual storage -somewhere around 14 gigs I'm assuming?
I'm hoping iCloud makes the hard drive space decision less stressful. If I could get to all my media without actually storing it on the iPad, it sure would be convenient. Looking forward to hearing more on this soon.