Why are the harddrives on iphones and ipads so small?

The maximum Harddrive space on the latest iphone is only 64gb? Why is that? With all the apps, songs and films you can download the maximum space apple gives you is 64gb? Why? Its nowhere near as much as a laptop and cast your mind back to the ipod classic you could get a 160GB harddrive on them. Does anyone know why apple went backwards?

The upgrade to 128gb costs very much and therefore is not relevant for a company like Apple who likes cheap hhomework in everything. Don't forget that laptops have much more space and can take regular hdds. The ipod classic's hd is very slow. If you had that one in an iphone it take for ever for any app to load.