I hate how Apple does stuff like this, but I would love to have a 32 GB iPhone.

 According to a note  from Pacific Crest Securities, AT&T (T) stores have been seeing lower inventory of 8-gig iPhones since mid-August. One possible reason, per analyst Andy Hargreaves: This could be because Apple is getting rid of the 8-gig iPhone and introducing a 32-gig model. The report goes on to hypothesize that Apple could drop the price of the 16-gig iPhone to $199 from $299 and price the new, larger model at $299 -- which makes sense. (Hargreaves also points out that this could be bad news for the rest of the handset business, especially component suppliers.)

http://www.alleyinsider.com/2008/9/is-apple-coming-out-with-a-32gb-iphone-

I'm thinking about picking up a refurbished 160gb to replace my 80.

I'd definitely pick up an 80gb Touch instead but at this rate it won't be released for another 18 months.