I picked up the 16G model and just threw the 32G SD card from my old phone into it. All my music videos and such were already there, so I didn't much care about the exact size of the phones storage. I was already depending on the SD card for the majority of my storage, The 16G on the phone is just a bonus for me. When looking at it from the angle of the SD card as my primary, the phones storage isn't as important.
I'm not saying I wouldn't like the larger internal storage; however, I've had screen and water damage issues with other phones, and it's always nice to just pull out the SD card and move on, never having to worry if the phone will fire up and let me get my data from it.