@codewiz
1. Operation system goes bigger, as well as bloatwares. Android 2.3 is less than 1GB, while Android 10 becomes 5-10 times larger. More storage is needed to house them all. Maybe a few people are indeed happy with iPhone of 16G still.
2. Modern phones takes more roles than ever. They are cameras, music/video players, game consoles and more. It costs more storage than that of a simple voice communication device.
3. Data on cloud is never yours - 1/2