But everything I know about the man, he was all about the user experience from top to bottom, end to end. Apple's entire modern reputation is built on that "promise."
The iPhone and iPads deliver on that in many ways, but the 16GB models and the laughable 8GB 5c, fail and they fail hard. The user is often distracted by this limitation, and many have remarked that they haven't install iOS 8 (Apple's latest and greatest) because they cannot.
Jobs was definitely around while they were shipping 16GB and even 8GB devices. But that was a very long time ago and the OS data and apps both continue to grow, while the devices sit dead in the water.
This is the key bit, and it already has caused some changes from Apple - 8.1.3 requires less free space to update.
The 8gb 5c is a terrible user experience though, and it really surprises me that they haven't discontinued it.
But yes I wish they would offer more storage on their product. The 8GB 5c was a weird step backward. Hopefully the next round of phones will address some of the flak they have gotten over storage.
I know this is just an aside, but it's really tiring to see people evoke "Steve Jobs would never have stood for this!". You have no idea, and he isn't around to tell you.