Actually 16Gb storage is not enough considering the pixmaps for games etc. will now eat a lot more space. I hit the same issue with my 16Gb iPad 3.
This being Android, I'm a bit disappointed that it does not appear to have a microSD slot. There is also a relatively heavy premium for 16Gb more internal flash.
The rationale for ditching microsd slots is that different volumes (mount points) for the built-in flash and the microsd flash complicates the UI, and creates dissatisfaction when someone runs out of space on one while having plenty of space on the other.
The modern usage pattern seems to be get enough built-in storage for what you want to do, then use wifi or usb to transfer stuff between the device and the cloud or a desktop with a larger collection of media.
This being Android, I'm a bit disappointed that it does not appear to have a microSD slot. There is also a relatively heavy premium for 16Gb more internal flash.