8.9 is the way to go.
If you dont plan on using it to carry a lot of stuff, 16gb is fine. Im quite a power user and I have a 16gb tab (they didnt have the 32 in stock for me.) It's not often i find my self wishing for more space.
I use it primarily for
Manga (Manga Reader app)
Anime and foreign film (crunchy roll app, mobo player with arm7 codecs)
GPS Navigation (tethered to my evo)
I would love to see more 8.9" tablets on the market. Some competition would be nice.
Samsung Galaxy tab 8.9 GT-P7310 w AOSP Android 4.1.2 [14-01-2013]
Motorola Droid Bionic XT875 (Straight Talk), Samsung Galaxy Tab sph-p100, Htc Evo 3d, HTC Evo 4g (sprint) , iPhone 3g (ATT), iphone first gen (ATT), htc 8525 (cingular), Siemes SX66 (Cingular), AximX50v, AximX30, Ipaq 4155, koycera unknown (death by brick wall), Palm Pilot 1.