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It really depends on what you intend to use it for. What takes up all the space is generally a combination of media (music, videos, pictures etc.) and large games. If you don't intend to use your Note for either of these, you should be fine but it will be a bit of a squeeze.

You can expand storage up to the size of currently available SDXC cards i.e. 64GB and this can be used for media storage but not always application storage.
 
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I haven't purchase a Note 10.1 yet, but my work iPhone, personal Galaxy Note 2, former HTC Incredible 2, Toshiba Thrive, my wife's iPhone and iPad are all 16GB versions. I do not keep a lot of media on them. My wife takes pictures out the wazoo and we just had to delete 6 months of pictures off her phone so she could take more. I keep my music on my iPod Classic.

My next tablet will be a 16GB version. Plus if you really want space, go buy a 16 or 32 GB SD card for less than the difference between a 32 and 16GB tablet.
 
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