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I have not had a phone with over 32GB for the past 2 years and yet I've never had to perform "active file management" or delete any media from my phone. I consume all my music through Grooveshark and Play Music and watch videos on Netflix or YouTube.

Do you only use your phone at home or when you have Wi-Fi access? (Do you live in South Korea?) Most US cellular data plans don't allow very much streaming audio, let alone video, before you hit a cap. Certainly not a month's worth.

Source: I've easily hit my cap when I mistakenly turned off Wi-Fi.

Smart music services (such as Play) will use this radical new technology called caching so that you don't have to stream everything you listen to if you have things you listen to more often.

Cool. Where are they "caching" the content if not on your device? In the ether?

I stream music and browse the web (including FB) almost every day of the week and I've never hit my 2GB data cap. My 16 GB hard drive is more than enough.

I think the target demographic isn't a heavy media consumer, so going with lower storage keeps the price down. Also, cloud.