Why is that shocking? Delivering a base model with minimal specs and upcharging for the specs that power-users need is Apple's standard way of doing business. If you want to store more, you pay more, either by buying more expensive models, or by subscribing to iCloud.
This pricing strategy is intentional in the way it is limiting to encourage people to buy more expensive models.
They don't offer 128gb as the base tier because they think it will meet everyone's needs. They offer that as the base tier because they think it won't meet everyone's needs. An ideal pricing strategy captures as many sales as possible while also upcharging as many people as possible who would be willing to pay more.
This pricing strategy is intentional in the way it is limiting to encourage people to buy more expensive models.
They don't offer 128gb as the base tier because they think it will meet everyone's needs. They offer that as the base tier because they think it won't meet everyone's needs. An ideal pricing strategy captures as many sales as possible while also upcharging as many people as possible who would be willing to pay more.