The 160GB bundle is a limited release, but the larger drive is likely to appear again in the future, either as another bundle, or possibly even as the standard HDD if Sony continues to push PSN downloads for videos, full games, and digital video recording.
The larger HDD bundle will probably be marketed as a "media" bundle, similar to what Sony is currently doing with the 4GB PSP-3000 bundle this Fall.
As for expanded storage, there is a laundry list of uses for more space on the PS3. It all depends on what the consumer plans on using it for.
As a media center, storage capacity should only be limited by individual user needs. Scalable is always best; over time, that limit continues to expand.
What it looks like, is that the MGS4 bundle is being phased out with the 160GB bundle, bringing the line up back to 2 SKUs in production.
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