so lets say you work in a big city like me - london, where data reception is rubbish for w/e reason and in some parts ill get a steady ish 3-4mb down from my EE/orange/w/e connection yet when I get home or on my way it drops to low 0.4mb or even 0.1mb.. how am I going to stream all that awesome music I need right there right then? can you see where the problem arises ? just because YOU don't need it doesn't mean that others don't so its a problem for some and it isn't for others and IMO covering as much of the market as possible should be the aim but google at the same time wants to push cloud services and I'm 99% sure they will release 8gb and 16gb versions again which to me are genuinely pointless! as 32gb is the LEAST I need for a media device.
This is exactly the problem I face and the reason I couldn't go for the Nexus 4. I listen to a lot of podcasts and music at work but where I work there is virtually no mobile internet...by that I mean I might be able to receive an email but there is no chance of downloading anything or streaming anything as it's very slow and very intermittent.
As such I download everything to my phone via my wifi at home (the mobile internet in Maidstone is also pretty poor, despite it being the county town...), and copy a good selection of my music to the phone.
The last time I changed phones I initially opted for the HTC One X but the version I was given was a 16gb one as that was all phones4u stocked. With the OS in palce I had something like 9GB of storage left... having come from a desire z with an SD card slot, at that time I had 12gb of podcasts and about 10GB of music, so the One X was useless to me and I changed to the Galaxy S3 purely because it had an SD slot.
The use of cloud services would be lovely if the mobile network over here was actually any good but in a lot of places it is so patchy and unrealiable it's just not realistic and Google are shooting themselves in the foot not including an sd slot in their devices!