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The base capacity is 64 GB now, but lots of phones of 32 GB and even 16 are still usable (the original iPhone SE, for instance, was sold in a 16 GB version and runs the latest iOS).

These older phones are way more common outside of the US and even just outside of the SFBA where not everyone buys a new $1000+ phone every 2 years.

It's 200mb now before a prompt shows warning users of the size they are about to download.

Indeed! Our app (a shift management app) at work is ~20mb, and I felt like that was quite a big commitment to expect people to have on their phones!