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For people (i.e American, British) who mostly use carrier-subsidized iPhone for 2 years contract, it's no brainer to just go with "$199" iPhone 4s 16GB. Saving another $100 for 2years contract worth $2000++ means nothing compared to what you get between 4 and 4s, better camera, doubled storage (albeit limited), better CPU/GPU, that's worth more than $100.

The case is different for another places that use prepaid plan for their phone. They have to buy unlocked iPhone, fully unlocked for crazy retail price, and pay HUGE upfront money. (And remember, you still have to pay for data plan with shiny new unlocked iPhone)
The price difference between iPhone 4s and iPhone 4 is noticeable, and unless you do anything intensive with your phone, the difference could be worth it. Unlocked iPhone 4s in gray market ranged from $700 - $1000 depends on capacity. While OTOH, brand new 32 GB iPhone 4 (could be remaining stock) worth around $500, which is tempting and great bang for an iPhone.

If you're being put into a situation that you could only use unlocked iPhone for a contract-free plan, you'd be amazed how many people will stick with iPhone 4. But for us lucky enough to get them under contract, just get the 4s, it's worth it for relatively small difference on upfront cost.
 
I never in a million years thought I'd fill up an 8 gig phone and I'm definitely not the heaviest user out there. But I did and it became a pain in the butt lol It's mostly apps, not music, taking up the space.
Really liking having the 16g 4S, doubt I'll fill that up tho....we'll see lol
It's really hard to say what you'll need. I ended up using my phone for many more things than I thought I would (no longer using PC for a large number of things)
Varies person to person I guess.

Edit: I only had my 3gs (8gb) for 8 months before filling it up, if that is mildly useful info at all :)
 
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At first I tended to agree with the OP, but nahhh. I'd rather get twice as much space (I'll probably need 32GB actually ... 3x the space), a faster phone, better camera (I can totally justify the higher price just for the camera), Siri, 14.4Mb/s downloads, etc etc

?

32 currently 4x the storage of 8.

I'm using base10 number system.

Am I missing something here? How is 32GB 3x the space of 8GB?
 
Yes it is worth because at first I thought 8gb is a joke and I lost my iPhone 4s so I am forced to buy 8gb iPhone 4 and not sure if 8gb is enough to fill all of apps and videos and pictures…but it sure fit. now I have only less than 3gb available with over 75 apps and 188 porno pictures :D
 
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