Companies would still be buying 32GB by the truckfull if it was available. Apple was right to discontinue it because 32GB wasnt enough to run the OS anymore, while also being a usable phone.
Since you cant run a phone without iOS, and stripping the OS down isnt an option, I think they should be legally required to be truthful in advertising and sell it as a 50-55GB iPhone, probably 50 if they plan on using some of the space for device upgrades.