I agree. I use 256 auto conversion on all of my music now, because I simply have too much and listen to such a wide variety at any given time. All the time. I have over a thousand CDs and at 256aac I still can't fit half my albums on my ipod. I think I did the math once, and I would need about 120 gigs to fit almost everything I own at 256aac while only removing the albums i really don't "need" all the time. However, the problem I have now is also videos/photos. My ipod never has more than a few hundred megs free. So I can't even take many photos let alone a single video, because the ipod doesn't work well without a decent amount of free space.
I even have problems synchronizing it, because it does something with the space and temp space in a way that the free space fluctuates when you sync. So I sometimes have to remove albums and put them back on just to sync. This causes the biggest pain in deciding what to sync. I need to pick songs from every single album, instead of just the entire album. That turns into an extreme chore. I buy a new CD, and I need to spend time agonizing over what to remove, which becomes more difficult with every new CD, because I have already removed anything non-critical.
So when you take into account the ipod is actually only 57 or so formatted gigs and you need roughly 500MB for it to run smoothly with no sync issues, etc. You really only have 56.5 gb (at least in my case). I just give up videos and photos. If it's that critical I delete a popular artist directly off the ipod and then just re-sync them later.
I'd be pretty darn happy with a 128gb ipod touch and wouldn't really have any qualms. I haven't been happy with the 64gb touch since the day I got it coming from a 160gb classic. I'd take the classic any day. But that is regarding space. Functionality-wise I can't live without the touch now. ha. So a 128 would be a life saver, a 256 would be a godsend. Even with my 1000+ collection, I'd be satisfied with not getting any bigger than 256.
I don't think we're in the minority per se. But I do think the numbers probably don't justify the manufacturing costs yet. Because even if 50% of people would buy a 256gb touch, they probably look at the fact that 45% of those 50% of people would still buy the 64gb because there is nothing bigger. Therefore they are almost selling the same amount to those people, but they're guaranteeing sales to 98% of everyone. I hope that made sense. haha. Basically, they're saving costs in manufacturing and parts and selling almost the same amount of devices. I just wish they'd leave the drive specs available/open enough for replacing the ssd. Then whoever wants to could upgrade to an aftermarket drive. Same with the classic.