I had the Limited Edition 4 GB original iPhone for two years so why not? 4 GB was serviceable before the App Store. Now I’d say 8 GB presents a real management challenge, but there could be some casual users for whom price is more of a premium than storage space.
My son wants an iPhone 5c but as he can fill up a 32 GB iPod touch in an afternoon with free games I’m not sure that makes a lot of sense.
Despite the rumors of the 5c being discontinued, I think it makes sense to push it down as the low-end phone with a price cut in the fall. We’ll probably/maybe/I-have-no-real-idea get a higher end phone with a larger screen this year, but it would be exciting if the middle tier of the iPhone line was like the iPod nano: Apple’s playground.