New iPad 32gb vs. Refurbished iPad 2 64gb???

I am purchasing an iPad for my children to use predominantly for educational apps as well as entertainment during long trips. I will probably use it to load my music, do web browsing, and probably use the kindle app to read my books as well since my original reader(original version) is dying. I can get a new one with 32gb wifi only and the apple care package for $699. On line at the apple store I can get a refurbished iPad 2 64gb with the same one year warranty and apple care package for $649. I have seen the new screen and it is lovely but it would mean giving up 32gb worth of storage. I know from my experience with my android phone which has and expandable SD card I can always find things to store if I have the space. I can't see spending $799 for the 64gb new one. Any thoughts would be appreciated especially as I am relatively new to Apple products.