The overwhelming majority will not need more than 26GB of storage on their cellphones in the next 2 years, including me, so that phone is still a very strong contender for my next upgrade.
Well then "the majority" are doing it wrong. A few albums of MP3's easily eats up 5-10GB. I have about 20 abums on my phone which is not a lot but it's 5.3 GB. With something like the Galaxy SIII that supports USB DACs and has a pretty decent one built-in already you might want to use FLAC files for your music as well, which are much larger. I've got 2GB of apps on at the moment, which isn't a lot really, (96 of them even including the stock apps like Phone, Email, etc, some people have hundreds). 3D games then use another GB each of other storage for their data files, I've got about 3 of those installed currently. Then I've got a few DOS games to play with ScummVM or DOSBox. Another 2.5 GB is used for audio books and about 1GB of podcasts. I don't really use it for photos, but some people go nuts like a Japanese tourist, which would take up another few GB.
And then, the big storage requirement: With something like a GSIII or One X with those big, pretty screens, you will want to watch music videos, episodes and/or HD movies on it. Episodes are between 350MB and 1.4 GB, depending on the length and resolution, etc. In the civilised world, mobile internet is uncapped (or as good as), and fast, thus cloud storage is used a lot more and you don't need as much space on the device. You can also stream anything in your library from your home server via the mobile networks whenever you want. That's why they give you 50 GB free Dropbox space with the phone. In SA though, that's pretty much impossible (or LUDICROUSLY expensive) and you'll need to store everything you want on the phone.
Saying "it's enough" just sounds like a certain other company, who everytime they leave out something glaringly obvious, use the excuse is that "no-one needs it ololololol." Even if you don't need it, the fact is the competition all offer vastly more storage especially if you pop in a 64GB card. They screwed up.
Remember, 640K of RAM ought to be enough for everyone...