Is there a market for a 128GB iPhone?

Now, we all know the rumor mill churns out whatever it can, once it's time for talk of a new iPhone - which is every time, to be honest. So, I stumbled upon this report, while being jobless, and it got me thinking: is there really a market for a potential 128GB device?

Apple Inc. does not break its iPhone sales down by generations, much less by version size, but anecdotally, I would have to guess its 32GB version is its highest-selling. Of course, with the implementation of a Retina display across its devices, along with the fact that newer releases of games get bigger in size, a case could be made for a bigger iPhone. But we can't forget the extra $100 for each size upgrade, which would put a 128GB iPhone at a whopping $949 (unlocked price). Just for context, that's $50 less than the entry-level 11-inch MacBook Air. (Yes, I realize the contract system in place in its home market - the US - which would price a 128GB version at $499, in all likelihood, but in order to carry all users from all markets along, let's go with the unlocked price.)

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via i.imgur.com

Another reason I see against this is, with the recent push by Apple to make its customers embrace "putting everything in the cloud", does not a bigger size iPhone, and possibly iPad, work against this push? I'm talking about iCloud, of course. As part of this service, Apple already offers its iTunes Match feature, which obviates the need to place your entire music library on your iOS devices. Why then would it offer a 128GB iPhone? I just don't see it happening.

Do you?