Shocked they are still using 128GB as the starting storage size.
I guess they have more information about usage patterns than we do. Anecdotally, I have a 256GB iPhone, and I use it consistently for a whole variety of things, and my usage is just under 94GB. I'd bet that my 'normal' family members use a good bit less than that.
Both my parents barely use the 64GB on their phone. The one that does photography, probably can't store all their photos on any iPhone, because it measures in the multi-TB.
I usually overbuy storage but after three years, I'm removing things like music and podcasts because it's completely full.