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A 16gb iPad can hold a lot of stuff. I have installed 90 apps, 5 CDs, 24 books, 45 pictures and I am using 5.5gb. Some games do reach 200-300mb in size. However if you start trying to hold whole libraries of PDFs and comics and several movies space will get taken up pretty fast. iTunes is your repository and not everything has to sync over to the idevice all time time.
Still, 32gb is a sweet spot for this kind of device.
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