Looking now at the Play Store, it's looking like that's a very big possibility. The 8GB Nexus 7 is currently out of stock and there's no explanation as to when it will become available again or not. Chances are though, Google is getting rid of the 8GB version after making a big mistake.
One of the biggest complaints with the base model Nexus 7 was the storage. After the software was installed, users were looking at just under 6GB of total storage. The way we look at it, this is a good thing and means that those who've been holding out on the 7 inch tablet, will soon be able to snag the 16GB at the low price of $199.
As for the 32GB Nexus 7, the launch is eminent and is said to be at $249, confirming the price drop of the 16GB and, again, the goodbye of the once base model.