Now they are stuck with a phone that is of an inadequate size in order to not only fully utilize it, but also it impacts developers and sales and companies that are constantly trying to push their incidental apps onto people.
I don't get your opposition to bigger storage when the increased storage would probably cost Apple literally next to nothing. Do you understan that the delta between the cost of 16 and 32 GB, let alone even 64 GB is basically negligible for them? It does not seem at all to be about cost, it's all about perceived price maximization, but I am rather certain their calculations either don't quite make sense or they are not properly considering and weighting their inputs.
I also don't understand why developers are not up in arms because Apple's foolishness keeps their app from being installed and used, which leads to decreased revenues. It really undercuts the whole ecosystem because people with 16 GB phones are not installing the hilton app, not installing the app for every airline, not installing health kit apps, not installing care kit apps, and not installing various other incidental apps that the ecosystem really requires you to have installed but take up way too much space to justify keeping installed on a regular basis.