16GB is small enough to require active storage management, even for fairly casual users. It's becoming a real issue.
16GB iPads are a poor (or at least mediocre) user experience, even for ordinary users. It's contrary to Apple's ethos to continue making them at all.
It's even sillier when you consider that everything else about the baseline $499 model has been drastically improved several times over since 2010, and Apple has taken steps that clearly reduced the utility of the 16GB baseline (retina graphics, full HD video).
32GB should be the new $499 baseline. It's way past time.
I know some users. I don't know if they are ordinary. I think they are. My parents in their 50's. A grandmother of 80. Some friends which are 30 with a very average computer literacy.
Every one of them took fast with the iPad (that's how Apple is good), but no one of 'em'll fill 16gb of space.
They've all had storage issues on 16GB.
Retina apps are big, and are the reason why my iPad 2 is stuck on iOS 5 and that I've not upgraded a lot of apps. They're too big.
EDGE is not remotely useful in the context of this conversation, I have no idea why you keep bringing it up. The only thing you might possibly hope to stream at EDGE speeds is audio, video is simply not an option. And (re-)installing apps of any substantive size is likewise impractical.
I am in no way ignorant of the mobile data options available to me in the United States. I simply know them to be an utterly inadequate to substitute for adequate local storage, and I can't even begin to understand how you consider them to be otherwise. Feels like you're just here to shill for T-Mobile.
Just because something is capable of doing something doesn't mean it should. A Truck is capable of street racing, but you'd be better off in an actual racing car. Make devices for specific use cases, not for everything. That's how you end up with Windows 8.