Then go ahead and do it. There are a ton of 32 GB phones you can buy outright, which will cost you around $700 - $750. If you are willing to pay that price, go ahead and buy such a phone. It just won't be a Nexus.
And now we're back to square one... it just won't be a Nexus.
You seem to think that you and I are having a debate about how much storage phones should have and what options they should offer. We are not. This thread is about the Nexus 4 and the Nexus 4 only. This is about whether the *Nexus* line - not any other phone, stock or otherwise - needs to accommodate demands for greater storage. It does not.
I am just pointing out the benefits of having a 32 GB Nexus 4. I certainly won't force anyone to buy one. So if you prefer 8 GB or 16 GB, that's 100% fine with me.
Btw, which Nexus phone, sold by Google directly at a cut rate (rather than carrier branded) previously provided a 32 GB or 64 GB internal storage option?
That's a trick question. Going with the way you pose it, no such phone exists. You are asking if one exists with a subsidy, when I had said that I was willing to skip the subsidy. (As a side note, the Nexus 4 is not subsidized in all countries outside the US, so if Google is using a subsidy to promote a cloud strategy, they are primarily promoting it in the US. Why not everywhere else if they want everyone to use the cloud?)
My original comparison was with the Galaxy Nexus. It had 32 GB variants in the CDMA version. So, 32 GB has been on a Nexus phone before.
We both agree that 8 GB and 16 GB are valid storage options. We disagree on 32 GB, that's all.