Hi, I (with my son's help) got a new iPad2 for my wife. We don't forsee much in the way of large volume video/image/audio on this device. It has only 16g.
We have started with a few apps, including a huge library of egw religious writings and bible software. Still have 12 gigs available.
So, I feel strongly that 16 is fine for her.
If you need lotsa space for video, etc. get more memory.
$100 is a little steep for 16g of extra memory,, but to have inside and useable in such a kewl device,, quite a bargain!
I want a '3'.. and I'll probably get 32g.
Enjoy!