I have 16G iPad2. My buddy is looking at getting one. Mine was a gift and I am not sure what I would have bought if I had been the actual purchaser......BUT I have not found anything that the 16g was not OK with.
Have you had any limitations with yours being 16g?
When I bought mine I intended to get 32 or 64 g, but 16 was all that was available. I am glad I did not spend more for the larger one because the 16 g. Is all I need. Perhaps if I filled it with a lot of movies (I don't) I would need more memory but this is serving me quite well!
I have a 64gig and between apps and music it's at 45gig. I did not get the 16gig because my iPod is 16gig and it was almost full. I figured I'd use more apps with iPad.
I had 16 gb version originally and noticed that memory disappears very quickly on it. I only had like 15 iPad apps and 150 songs and was down to about 6 gb. I plan on keeping it for a while, and dont want to constantly delete apps to add new ones. I instead traded up to the 32 gb version of which I'm down to 22 gb with 82 apps and no music (use slacker and spotify now for that which takes up some space to cache music)
There is something called airstash, i use one and love it, can use upto a 64gb sdhc card to staore movies, music, pictures on and then it strams to ipad or phone wirelessly. Just easier to carry around then a hard drive.
I also have the AirStash for movies. It works well with my Vulkano DVR. However my normal use is some music (less than 6 GB, over 1500 tunes) & ebooks (a few hundred). I've never had any problem with the 16 GB memory. Got the Airstash more because I'm a gadget freak than that I needed it. I only view movies on the iPad once then delete them (for waiting at the doctor's office or for my wife) when I don't want to read.