I think 32GB is the best value. Maybe it's true that storage shouldn't cost 100 extra to jump from 16 to 32, but following a different logic... If you get an iPhone (or iPod for that matter), and it turns out to be too small of a capacity your screwed. You can't change the internal storage capacity, or return it or anything. Also, everyone knows that the real life storage capacity is always 1.5-2GB less than what Apple advertises due to the OS, and other things. The way I was looking at it is if I throw on a crap load of photos, start recording a lot of 1080p video, will I have be good for the next year. In all honesty I would have got the 64GB but I'm waiting for the iPhone 5 to go all out. 399 + tax is a lot of damn money for med student to spend on any phone (particularly one that isn't a different exterior design that the previous) especially when I'm replacing an iPhone 4 with a cracked screen...