According to a report from the Guardian, Google has suspended orders for the 16GB version of the Nexus 7 due to unforeseen demand.
This report also states that the 8GB version has seen "comparatively lower demand" and seems to concur with my prediction of the popularity of the 16GB version.
This raises an interesting debate with respect to the iPad Mini as well, since consumers seem to be swayed more by the storage than pricing (at least within the $199-$249 price band). The only way for Apple to Price the iPad Mini anywhere close to that range would be to give it 8GB of storage. This could be one reason why Apple may consider delaying the iPad Mini to later in the year, as component prices could drop sufficiently to price the low-end, 8GB version at $249.