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You might get away with 32gb if you sync every few days. I went from a 32gb iPod touch to a 16gb iPhone and basically it just meant I moved playlists on and off more often.
With photos you can sort them into galleries by date (or if you use iPhoto) by person or geographic location. So you just drag and drop them onto your device in iTunes.
That means you may decide to only sync photos from the last 2 yrs by dragging those albums on. With 10 hrs battery life you will be syncing regularly so you could just add/remove older albums/books when you need them.
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