N79 - Why so little internal memory

My perfect phone - will even forgive dual LED rather than Xenon - OTHER THAN 50Mb internal memory. Less than 90mb on N Series last seen I believe 18 months ago in the N77.
Why the backwards step - has memory become expensive all of a sudden?
Running 6220 Classic (not even N series) with 100Mb. Mail for Exchange consuming 49Mb -MfE must be installed to device memory -so there's no way I'll be able to upgrade and enjoy the benefit of a much improved build quality - 6220 is not good in this department.
Completely perplexed why a "smartphone" in Q4 2008 would be pushed out into the market in this condition.
Can't believe reduced cost and/or reduced size argument can be significant enough to justify Nokia's bizarre decision. I'm therefore inclined to believe that it's as much about slicing their N series customer base into distinct segments so as to maximise the sales in each segment. Nothing wrong with that as such but I'm personally not inclined to trade up to the N85 (do not want a slider) to tick the one box which in my opinion is missing. I reckon the loss of ex WinMo Exchange Server users will likely cancel out those who do decide to trade up.

Was informed by Nokia Online Sales that listed for France and Low Countries in November so assume UK will arrive about same time.

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