I think there's some points not made, I can tell you first hand that the 16gb iPhone outsells the other models at least 20 to 1 (or at least that's how it is where I am currently selling it and my surrounding market), I understand that people want the option to have more space but from a stand point from most consumers, they feel they don't need more than 16gb and will always purchase that version. Also if you are going to produce only one version of the device going with the version that will appeal to the largest group of people based on needs and an attractive price point is the way to do it. They do offer the cloud storage options to try to appease the heavier user when it comes to storage and I understand it is not a great fit for everyone but it is an option. If the One-X launched with 32gb and a $299 price point it would be priced out of the "average" consumer's target price point and would be a sales flop. (I do have a 32gb iPhone and I use more than 16gb and I preordered my One-X, I will make it work for such an awesome device, not to mention, I never even listen to the 8gb of music I hold on my device and use streaming services for everything and there are wifi options close to everywhere)
Something also not mentioned on here but is something I find important to me is that Android allows me to customize the home screens which makes the device much more aesthetically pleasing to me. My iphone is nothing but screens of blocks, but with my androids using things like Beautiful Widgets and so forth I get all my information (news, social media, weather, Android Central, and so forth) right from one of my home screens without having to launch any apps and keeping a nice clean look. I know that is something that falls under just general Android vs. iPhone but it's something that is important to me and the customization that Sense uses definitely makes it more aesthetically pleasing (at least in my opinion) over even other androids
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