The nice thing about internal storage, though, is that 1) it's usually faster and 2) you don't have to fart around mounting the SD card as storage. The Nexus just mounts it (and charges at the same time) automatically to your computer as a media device, and you can use the files on your phone as soon as you transfer them without having to unmount the storage from your computer. This was a big deal for me, since I seem to transfer files a lot.
Also, it's GB not MB. A phone with 16MB would be totally useless.
Just wanted to make sure the correct facts were given.