Exactly.
And maybe kids born in 2018 will have a hard time believing that we had phones that could not double as a computer… 
Also, if you think about a device that aims for freedom, privacy, independence - in other words not cloud services based, storage becomes even more important. Think
- offline map data and routing algorithms
- offline dictionaries, encyclopedias, translators
- voice recogintion + text to speech (I’m actually not sure if that needs notable storage, but i guess a GB is wasted easily)
Here’s an interview on EndlessOS, where they even put an offline Wikipedia on devices, mostly for bandwith purposes, not privacy. It’s a really interesting project.
Anyway, one can hardly have too much space on a phone