MacRumors is passing on... well... rumors from MacBlogz of a 32GB iPhone! Says MacRumors:

The reason the largest iPhone (16GB) currently has 1/2 the memory of the largest iPod touch (32GB) is that the iPhone can only house a single NAND Flash chip while the iPod touch can accommodate two. The additional space in the iPhone is taken up by its communication hardware. In August, Toshiba announced that they would begin mass production of higher density 32GB chips in the 4th quarter of 2008.

Intel, they go on to say, may well bump the capacity even further -- to a startling 64GB -- by early next year. Sound crazy? Heh. With Macworld coming in just over a month, we ain't seen nothing yet on the rumor front.

Still, 32GB is drool worthy, and something we here at TiPb are predicting for next year as part of a third generation iPhone HD, so you know we wants it.

How about you? Is 16GB enough, or is it always going to be a case of the more, the better?