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While this blows and I am not sure what they could possibly include on the device that is 40 GB in size, is this really that big of a deal?

I mean I saw 64 GB micro SD cards for 49.99...good ones too. USB drives too can be had for pretty cheap and can be found so small they are barely noticeable.

don't get me wrong... 128 GB model is a must in my opinion. But if I had a 64 gig model, my life wouldn't be ruined. Infact on my Surface RT I have like 20-something gigs free + 32 GB SD card and I am still very happy with the device.