Like most people, I don't really care about "the Classic." I see it as the device choice of insufferable snobs for the most part.
I think the last part of your statement about how long it would take for 128GB to move to the iPhone and iPod is likely incorrect however. The fact that they can do this storage upgrade "mid-stream" as it were, without a redesign of the device, indicates to me that its a simple chip swap and that the two parts are of identical size.
If they can simply swap out the chips for a larger capacity chip of the exact same size, then it could literally happen overnight. The fact that this move would do a great deal to improve their gross margins, (exactly the problem in their last financial report), means also that they might be very motivated to do so.
I'm not sure how my wanting to have access to my complete music library whilst travelling in places with little or no Wifi, or without having to pay hefty roaming charges for the privilege, makes me an insufferable snob.
I agree with you that it won't take long before the iPod Touch and the iPhone get the same capacity bump, and I'm guessing the iPad Mini will too. This announcement has delayed my upgrade from iPod Touch to iPad Mini and made the planned replacement of my almost full 120GB Classic to a 160GB model more compelling.