Now how would Apple make money off the sequentially larger storaged devices if everything came from "The Cloud"? Lol. We all know they barely turn a profit.
Perhaps someday we will be able to stream our iTunes, TV Shows, and Movies.
In one sense Apple does this for you-you aren't burning up your data, if your not connected to WiFi. ex. Avatar is many Gigabites in size... Also, their (Apple's) bandwidth is stressed when people over shoty network Internet tries to download large files. "It's hard to go that slow"... Or the constant speed changes from switching towers, or completely having to stop and go when your in and out of service...etc.
So the same restrictions of FaceTime applies to Videos, iOS updates, and Apps over 50 mb...
You Must Connect To WiFi. :-o
But, again, if you could just stream everything... There would be GREATLY less demand for the higher storage capacities. Apple counts on people wanting to stuff their phones with stuff you buy from them.
On another note, maybe they could do things like the Gaming Consoles...& sell the phones at a loss.
Ie. When Microsoft released Xbox 360, it sold $126 less than what it cost Microsoft to make it. Sounds crazy seeing as it was like a zillion dollars already... But they make their profit off the Games, Accessories, and Xbox Live.
Point being, if they sold the phones at cheaper prices people could afford the 64gb phones no problem and Apple could let people stream because they'd still make their friggin money because we'd spend the extra friggin money on the "good deal" bigger phones!