LG Nexus price rumors say:
399$ for 8 GB
449$ for 16 GB
I would definitely go for the 16 GB.
http://androidandme.com/2012/10/smartphones-2/lg-nexus-to-debut-at-399/
Maybe they'll pull the same game plan as they did with the NExus 7. Release 8GB and 16GB initially, then move the entire line to provide 16GB at the former 8GB price point, and 32GB at the former 16GB price point, possibly phasing out the 8GB version.
Kind of like the heavily rumored 32GB Nexus 7 that's coming soon to replace the current 16GB Nexus 7, bumping the 16GB down to the 8GB price point.
I think I'll wait a while before I consider upgrading to the LG Nexus just to see if this pans out.
Also, I know it's prototype software and hardware, but the initial "review" just doesn't seem very promising. I really want an awesome camera.