They better increase everyone's storage (even if it pushes people above the current max) or else people would have wasted money on upgrades.
I am maxed out on items and am pretty much always full (1,000), though it fluctuates depending on what I'm doing (catching/gym training).
I have 375 of 800 for mons. I had caught up to 800 this morning in anticipation of some candy/XP bonus but transferred all of them after the announcement. I will say the new selection option for transfers is pretty awesome.