Perhaps, perhaps not.
Don't get me wrong, I think 16GB is the absolute minimum (the fact that anything android is still releasing with 8GB is silly) but depending on your usage pattern, 16GB can be plenty.
Basically, if you are going to be using the device primarily in home, you don't need *that* much space. Depending on the "cloud" as your main storage sounds like folly. But depending on your home WLAN can be much more feasible.
For example, creating a Nandroid or Titanium backup and putting it on Google Drive sounds like tempting fate with disaster if you had your device go sideways while out of town for a week. But saving those to your local computer merely becomes an added step if your tablet rarely leaves the premises.
Same thing for videos. You can easily stream movie rips or TV shows DVRd from a home media server with little hassle, as opposed to taking a gamble on getting a decent hotel wifi connection to connect to Netflix, etc.
Anyway, I checked my current 16GB tablet, that mostly stays at home, the other night when I was wondering this same question. Even though I have a number of fairly large games on it, it still had close to 6.5GB free. When I do travel with it, I like being able to load up a 32GB mSD card and slip it in the side. That said, for $100, I could manage with plugging my little USB OTG dongle in and just using a USB flash drive.
However, it would be nice if one of the memory vendors would release one of these with a native micro USB interface so a person wouldn't need to bother with the OTG dongle.
Amazon.com: SanDisk Cruzer Fit CZ33 32GB USB Flash Drive (SDCZ33-032G-B35): Computers & Accessories
-Suntan