My experience appears to be the opposite of most people on this thread. I bought a 32GB iPad 2 thinking it would be more than enough for my use. After all, I have a 32GB iPhone and I don't even use half of its capacity. Unfortunately, I was able to fill the iPad up with manga (Japanese comics) the very weekend I received it. Replaced it with a 64GB iPad 2 which currently has only 20GB free space. That's without any music or videos on the device - purely books and a small portion (~5%) of manga collection.
Unfortunately, while I do use cloud storage, it's not particularly practical for my iPad usage. A single volume of manga can be anywhere from 20MB to 100MB depending on compression used. Not very fun to wait for downloads via 3G and if you've got a tiered data plan, it'll eat up bandwidth quickly.
Basically, it boils down to how many things you need/want to have offline access to at any given time and whether or not you have easy access to Wi-Fi.
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