Personally (e.g. for my own use cases) I think that's a huge leap to make (e.g. eschewing local storage for network loading of data).
iPad apps aren't that much bigger (e.g. the user interface xibs, etc aren't any bigger in terms of file size), but as more apps start leveraging the user interface possibilities, I think you'll see image file size (raster data) begin to grow. GPS apps that store their maps offline are one big space hog I see as they move to the iPad as a GPS device if auto makers start to create good mounts/integrations. I cache a lot of my Dropbox, etc in Goodreader. I've started to see the iPad/Evernote as a killer app for offline work (on planes, etc) and I store my entire 2GB Evernote DB offline.
This really is a bigger question of how you'll use the device...my instinct is that the fact that you even ask this question leads me to believe there is some doubt that 16GB will be too small. I'd say go bigger and avoid buyer's remorse unless you really can't afford it. Here's my detailed thoughts on that:
Applications/Uses I Don't Think Network/Cloud Performance (either Latency or Bandwidth) Is Up To
-Viewing Albums in Cover Flow - thumbnail load et al demands pre-fetching and low latency. I haven't seen a well implemented network based system for this yet. three twenty comes close, but it's *not* true cover flow/multitouch.
-Travel - unless "travel" is limited to some densely populated wi-fi areas, the networks are not reliable enough pretty much anywhere to say I can't use data. Also, on-board an aircraft, you're dead in the water without local storage...even on the wi-fi equipped portions of the fleet (well below 1% of the scheduled service in the world has this feature, anyway).
-Anything time you can't/won't be near backup power for more than an hour - Playing video for 8 hours on my iPad is awesome! I love it, you'll never see that time powering a WiFi radio doing (relatively) constant bit rate streaming. Forget about it over a 3G connection, especially with how poor ATT's coverage is.
-Camping/Outdoor/Backcountry Recreation - Well, my iPad/iPhone usually doesn't come with on stuff like this (the whole point), but sometimes I *WILL* bring it with when it's not a "jump off the grid" trip...but still, power is precious/unpredictable. Networks tend NOT to exist in places I go for stuff like this.
I don't think the user experience is there to replace local storage for all but the most ardent geek who likes doing it because it's "cool" and because he/she "can" and/or the very rare user that will always have a low-latency and high-bandwidth connection and either 7000mah of backup power with him/her to charge the device and/or a power connection pretty frequently.
In those circumstances, I'd just use my MacBook Pro.
That's just me. I think a few areas where I *can* use media over the network vs. the local storage are:
1. Recovery workouts on the treadmill at the gym - Usually less than 1.5 hrs, good wi fi network and/or 3g coverage for me in those areas, and I have power before/after to build battery in case I need to (sometimes even near by to the treadmill). I frequently stream some Family Guy etc over Netflix for this when I need to forget how much my legs hurt and zone out and just run.
2. Lunch - again, usually have good power at/before/after and if I'm working/hanging out in an urban area, network is pretty good.
3. Commuting - If I take the bus, awesome, generally the big corridors of metro areas have good 3G to stream media, and it's a short enough use that the power draw won't leave me stranded when I get to my destination.
So, really, do you think 16GB is enough space to hold stuff when the network isn't available and/or you don't want to spend the battery mah? If so, sounds like you got a $100-$300 savings, but I don't think myself or the people I know would be willing to save $100-$300 to buy a device that would probably start to annoy us/leave us stranded. I'm pretty pessimistic on network performance, not because it is bad, but because when you need it, it usually is bad, this isn't true, but my point is human psychology more than fact here, you'll have a few failures when you need/want your data and I tend to think that over time you'll have buyer's remorse despite what a slam dunk $100-$300 savings this looks like right now.
I have a 32GB (decided not to get a 64GB b/c I can Netflix stuff), but I have 16GB of my most often used media stored in addition to 16GB of app data.
I've been a long time user of Plex. I've got a Mac mini that's practically dedicated to the one application. It's an absolutely fantastic application and it just got a hell of a lot better. Plex has now replaced Air Video for me with the release of Alexandria and I'm starting to consider getting a smaller iPad.
I've been eyeing the iPad since it first came out, but I've been really waiting to get one with iOS4. I'm hoping maybe Wednesday might shed some light on the delay, but I'm not going to post false speculations here.
With the advent of steaming apps like Air Video, and now Plex that can do everything (Music, Movies, TV shows, Netflix, Hulu). What's the point of having storage space? I've been wanting a 64gb iPad 3G, but streaming makes it seem more like I'd be better off sticking with a 16gb. I've already got a Mac mini server at home, running Plex Media Server, and hooked up to a 4x1tb Drobo.
I've got a 16gb iPhone 3Gs right now, and it stays roughly 7 gigs full of apps (maybe 2 of music). On average, how much bigger are iPad apps, and what is your take on storage with streaming becoming so popular?