Video Capture, more photos, larger image sensor and better camera on the iPhone 4S means I'll spring for 32. Even with iCloud and all the music streaming options, I find I always want 4 GB of core music (and another 2.5 of podcasts) with me. Having room for more serious app and book (PDF) storage will be very nice.
The 14 GB iPhone 4 I've used since it launched was sufficient except for maybe a handful of times where I wanted more space. Especially when using iMovie to assemble slide shows and short video updates on a longer trip. Also, if an apple keynote or other hour long video comes out, I don't have the space to accommodate such videos.
Those are the few times when "the 16" wasn't enough for me. I now don't take several databases with me using bento and filemaker pro since I want more space for songs and camera footage.
I initially thought of a white 32 iPod Touch and the smallest black 4S - but having all the space and speed in one package makes it more of a computer to me. I can grab a bluetooth keyboard and get short work done if needed. I'm also quite eager for AirPlay and a 4S.
Ok, I got it done, but it took a little bit of a run around.
I had failed to mention in my question that the size of the original 16GB backup was indeed close to 16GB. Clearly not going to fit on the new 8GB phone.
The very first time I tried to restore from backup, I got a message about the size incompatibility. Every subsequent time it would just hang at "Estimating Time Remaining..."
Next, I decided to remove much of the superfluous data on the old phone, to get a new backup of it under 8 GB. Trying to use this new, now smaller, backup resulted in the same hang up.
At this point I thought it just might not work.
With nothing to lose, I decided to have iTunes restore the phone to factory. Then, the very first thing I did was try to restore from the new smaller backup... Success!!
Somehow the failed attempts before hand, were keeping the phone from successfully restoring from backup.
Best Answer
Yes, you do have a 16 GB iPhone. The other 2.2 GB are taken up by iOS, etc. See here for more information.
Your model, MC676LL, confirms this: it indicates that you have a Black 16 GB iPhone on Verizon. See this Bestbuy page for more info. The 8 GB phones have different model numbers.