Yup...posted this in a thread...16GB iPhone is pretty obvious, what's not clear is why it wasn't ready for today's announcement. It's far more typical for Apple to 1. reduce price, 2. obsolete the bottom end and then 3. introduce a new top of the line product for same price as old one.
Since 64GB flash memory is available now I suspect that Apple is going to postpone the new iPhone and announce a 32GB iPhone before the holidays. I think the competition between the 16GB iPhone and the 16GB Touch would be too much right now. The two models are just too similar, especially with the possibility of skype working on the Touch.
If I were a pessimist I say Apple's going to wait 8 weeks so it can screw some more of its customers then.