When I upgraded to the 4S from the 3G I doubled my storage from 16GB to 32GB. I thought, "I'll never be able to fill all that space!" And each day I wrestle trying to get my media down below the full capacity mark.
Always go bigger than you think you need because it is inevitable that larger and larger applications and media will grace your phone.
In the long run, the $100 increase in price now will be totally worth it.