Yes, I know they're priced the same. However, you'll notice that the 8GB 5 is difficult to purchase. Why pay a substantial sum (a 17% price increase!) for a "benefit" you'll never notice?

You can get the best price-per-unit-weight on rice by buying tons of the stuff, but very few consumers are willing to do that. We prefer to buy in pounds for various reasons.

"Lower quality, lower price" is an incredibly time-honored and effective philosophy -- of buying things and of selling them.

And if you want to consider the recent pricing (I tend to agree that the 4s were priced to move, so it's not a great comparison)? The 4 is a clear winner. There is no way I'd voluntarily pay $350 for a new nexus 5 instead of $200 for a new nexus 4.