Iphone 3G S: How to choose between 16 GB and 32 GB

Can someone estimate the capacity differences? Is this mostly about music and media storage, or will 16 GB significantly limit my ability to use apps?

The 16 or 32 Gig refers to essentially hard drive storage, not RAM in the iPhone. As far as I know all sizes of a model have the same amount of RAM (for instance all 3Gs have 128 Meg or RAM). So the size options within a model of iPhone are all equal in their ability to run applications.
Since media tends to have the largest file sizes, which one you pick should be drive by how much music, and videos of various types (TV shows, movies, podcasts, courseware) you want available.
While the apps do take up some of the 16 or 32 Gig, you'll find they are tiny compared to an album of songs or a video.
I have a substantial amount of music on mine (~8 Gig), and then shuffle videos on and off as I watch them. My 3G 16 Gig model has a little over 3 Gig available, and so far I have not run into an issue running out of space.

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