I would recommend the 16gb model if it fits your budget. The extra gigs make a difference in this era of 1+ gig apps and 1080p video cameras, I have found.
If they offered a 64 gig model, I'd buy it. Obviously, a microSD slot would be ideal, but that would go against Google's current religious crusade to rid the world of local storage :)
yes, all bad practices... I think of this like when you buy something at the store at the advertised price and it comes up at a different price at the register (almost always higher)... this is wrong.