Do you think most people even know/care about the difference of 2/16 and 3/32? Other than the clearly obsessed (ahem, points to himself), I wonder if that's really a big selling point. Samsung is selling plenty S5s with no 32gb variant.
I think most of these people you refer to get iphones or Samsung S whatevers. The G2 and G3 and the so-called prime phones aren't going to sell as well to the mainstream mostly due to the marketing hype directed at the average consumer, etc.