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It's probably because their strategy with the tablets is primarily media consumption on them, mostly movies, music & ebooks. They're thinking people will mainly be using them on WiFi at home, so they can stream and not need storage for them. This seems stupid on the kids tablets, as parents very much want to have offline storage of movies for their kids to watch while in the car and shopping.
They're also probably leaving out extra storage to keep the devices as cheap to make as possible. Although I kind of doubt it would add much extra cost to them at the scale they're buying it at.
Most of the Fire tablets nowadays (maybe all) have microSD slots, so you can add a bunch of storage yourself. Consider the price to be artificially lower, since realistically you're going to need to buy extra storage for it.
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