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iTunes Match to make larger iDevices redundant?

Apple's iTunes Match has just recently been rolled out internationally, after initially being released in the United States, as a natural extension of the company's iCloud services. Whilst iCloud is by-in-large free and allows most of your content to be synced seamlessly, iTunes Match with a yearly subscription allows all your music to be stored on the cloud.

Itunes_match

In fact it just checks what music you have on your iTunes and will already place the music on the cloud without you having to upload most of your content which is great. As an owner of an iPhone 16GB phone as well as a 16Gb iPad, I just realised when subscribing to this service that I may not have to bother creating my usual favourites list of music and cap it at about 8GB to sync to my devices. 

This service has given me access to all my music on the cloud, so I don't have to be stingy about what I put in my device. Does this mean Apple has effectively butchered sales in the 32GB and even 64GB devices as music storage on the device-side is a thing of the past?