As usual, I'm happy that there are choices.
I am NOT one of those people who needs tons of space on their phone. I used to be, but then I was blessed with the wonders of rdio. Since then, I haven't stored a single MP3 on my phone and it fits MY usage perfectly. It won't fit everyone's usage, but once again, that's what choices give you. If the Nexus 4 won't suit you, you don't have to buy it.
I've attached a screenshot of my data usage. This is how it's been for almost a year since I got my Galaxy Nexus. Clearly, I will have no trouble moving to an 8GB phone.
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Matt