The lack of expandable storage in Google Nexus devices (released after the Nexus One) has been a sore spot for me for some time.  It's pretty obvious that Google would rather have you use their cloud services (and for the record I do, every song in my music collection is stored in Google Music and every photo I take with my phone is automatically uploaded to both +Google+  and +Dropbox but this leaves out a couple of really critical factors.

1. You don't always have Internet access, especially if you have a WiFi only tablet but even on a phone, I know most of the places where I ride my motorcycle provide at best swiss cheese coverage.
2. Everything stored on your phones internal memory is for all intents and purposes lost forever if that phone stops working.

Especially now that phones have almost completely replaced stand-alone cameras for casual photography, picture you are in a scenario where you are vacationing with your family someplace without cell coverage, it could be another country or just a remote place and using your phone as your camera, all of the sudden you accidentally drop your phone, maybe into water or maybe just onto a hard surface and it's gone, if all your photos are stored on a microSD card it's very likely you will be able to easily retrieve those photos and/or videos just by popping the card into a card reader but if it's on internal memory it may be technically possible to access that (involving microminiature soldering and probably a donor phone you are willing to sacrifice) but it's difficult and expensive enough to be beyond the reach of almost everyone.

Via +TmoNews  cc: +Matias Duarte +Dan Morrill 
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