Both models carry the same abilities, but really, I feel like the 32GB model makes as much sense for a device so centrally focused around video consumption, and apps, as a 16GB model makes for a 4K recording capable device like the new iPhone. Just as there are very casual, minimalist users of the iPhone, there will be a category of Apple TV users that will, for various reasons, never experience a storage limit warning on the smaller storage tier. Though, for a majority of those interested in picking up one of these set-top boxes, I would be hard-pressed to recommend anything but the top-of-the-line model.
I haven’t ordered the new Apple TV yet, but I’m leaning towards the 32GB model. I’m just not sure if I’ll need a ton of storage. Samantha is probably right, though, I would probably be better off with 64GB. But if I get it home and find that I need the extra space, I can always demote the 32GB model into my bedroom and purchase a second unit for the living room. And I suspect that if I do find that I need the extra storage, I highly doubt I’ll want it for every room in the house.
Best case scenario, I don’t end up needing the extra storage and save myself $50. Worst case scenario, I’m stuck with an anemic set-top box for a short while until I am able to upgrade the TV setup in every room of the house. Not a bad plan if you ask me.