Several sales reps admitted that they get people in asking about the iPhone 6 all the time, even on the Fire phone’s launch day.
It’s a good question, but I suspect Apple will maintain the paid offering (with a free trial). You could certainly argue they could and should make it free (paying for the music themselves), but I think they worry just as much about the signal that would send to the music industry. Something like: “your art is just a subsidy we pay to sell more devices” — which, when you think about it, isn’t far from reality. But I highly doubt they want to go in that direction so explicitly.
Yeah, I’d imagine (though have no actual knowledge) that we’ll see a 128GB iPhone in the next iteration. Maybe that means the end of the 16GB model, or maybe it means that’s reserved for the more affordable version.
The one thing working in the other direction is the movement of all entertainment to the cloud. That is, Spotify, Beats, Rdio, iTunes in the Cloud, etc, allow you to keep a lot less music stored on your device these days (though some is saved for offline capabilities, of course).
Still, while that has alleviated some of the need for a lot of storage, apps continue to grow in size — particularly games. Many are over 1GB now. 16GB seems untenable. And 128GB seems inevitable. (And that should drive the price down of the 64GB models, etc.)
Update: As, of course, as my buddy Cap notes, photos and videos are driving this need for more storage perhaps above all else.
They could release a revolutionary 60-inch 4K TV for $99 with built-in nanobots to assemble and dispense free smartwatches, and people would complain that it should cost $49 and the nanobots aren’t open enough.