I just use my current 64 GB iPod Touch for music, podcasts, and audiobooks too. It always used to be annoying when I had everything on my iPhone 4 because I'd take like 300 pictures, and a message would pop up that I was running out of space.
I didn't really think about how differently I would start using my smartphone coming from the 2G.
Now I have a 64 GB iPhone 5S. I haven't filled it up completely (I still have 20 GB left), but it's nice that I don't have to think too much about it. And I especially like that I have the space to edit down video because I've been filming a lot of things lately.