I don't know what the story is behind this but if Apple is upgrading people I'd say it's a smart move. Call it the "Gmail Rule" which states "You should give people a monstrous amount of storage because it's great PR and 99.9% of people won't come anywhere near using it anyway"
End Result: Happier customers for almost no cost (With storage as cheap as it is the .1% who do use a lot of space will still be relatively cheap to maintain)