How so?
It seems the Nexus 7 and an entire lines of Apple devices have done just fine without expandable storage.
I certainly understand why folks want the option, but as demonstrated, being able to charge a premium for different tiers of internal storage works wonders for profit margins.
This annoys me a bit less on my Galaxy Nexus as I don't typically install large games (> 1GB) on it.
Devices can do fine without expandable storage, sure - but it's an easy differentiator for Android to make, and is one of the reasons I bought into the platform to begin with.
Now I, on the other hand, have to deal with a (Samsung) android phone running Gingerbread, which with the Facebook app installed, and all Android updates installed, complains about having run out of internal storage.