After trying to live with the 16GB of space on the N4, for sure I would never buy anything less than 32GB of space. In reality, even 32GB isn't enough after the OS and stuff as I carry about 30GBs worth of stuff on my other phone with its 64GBsd card but at least with the N5, I'll have to remove less stuff that I want to carry around.
Really wish they would just give a SD card slot.
Interesting thing about that statement is that you've indicated still not being able to carry around as much as you'd like to with 32GB. Thing is, we'd all like to not have to
choose what we want to carry, but rather to be able to carry it all.
Once we recognize that that is not currently a possibility, it's a simple matter of determining if the 16GB unit will hold what we
need to carry for our purposes in between times we can shuffle content. If it will, then it's just a matter of deciding if the extra $ for the 32GB is worth the convenience of being able to carry more. As an example, I have a few movies, a full season of Dexter, several large games, and a variety of other apps/files on my 32GB N7. Why? Because I can. But to be honest with myself, I won't go through 1/2 the video content, play more than a couple of the games, etc, in any amount of time that would actually make it truly inconvenient had I been limited to 16GB (and yes, I know I'd be giving up more than 50% of actually available storage).
Convenience is nice, but I think I'm falling into the habit of being an annual upgrader (N7'12 ->N7'13, and will be going N4->N5). In calculating cost of ownership over time owned, the base model - since it will meet my actual needs - is becoming more attractive.
It may be easiest to look at it this way: assuming the 32GB model costs $50 more than the 16GB model, and you're looking to own the device for about 1 year until upgrading, the 32GB model would cost you a premium of $4.25/month. Of course, it's bears consideration that you'd be able to recoup a little of that in resale value, but by the same token the savings from going with the 16GB model - provided it covers your needs - would not be diminished, and would provide a nice effective discount towards the replacement.