It's not something I personally would do because (as others imply) IMHO the CPU trade-off is not worth it. Usually I use a blend of plug-ins (which take up no space) and recorded hardware, consequently the amount per track ends up being more like 100-600MB and not gigabytes. This is rather manageable.
However, I will note that sample based software synthesizers and sample packs can be huge these days, even despite in many cases lossless compressing being applied to the sample library. Omnisphere 2 for instance comes with a 60GB+ sample library (and that's before you add the add-ons like Moog Tribute). At the current extreme end, orchestral sample company Spitfire offers a string library (https://www.spitfireaudio.com/shop/a-z/hans-zimmer-strings/) that is 183GB in size and a sampled piano that's a whopping 211GB compressed (https://www.spitfireaudio.com/shop/a-z/hans-zimmer-piano/).
Even the relatively small software instruments (I've been really into Soniccoture's Glass/Works, for instance) use up like 8 GB apiece.
Granted, the industry standard in this area (ProTools) is an absolute CPU hog to begin with, so it needs all the help it can get.
It would be interesting to have a media-friendly archive file format for the final tracks of completed projects that automatically compresses/decompresses WAVs as FLAC...and other raw data formats as their losslesss counterparts...closest thing I can find is zipx with wavpack.
Renoise does that. With software synths and sample-based instruments, the biggest chunk for me is always the vocals.. and I would have to have a lot of takes to get over 100mb. Of course, my music isn't the music people who record a bunch of live instruments make, it's not a fair comparison, but still, for my uses it's fine, and it's super fast. I wish there was an option to bake VST into songs, I would love to be able to share full songs as "source" (obviously it would have to be songs only made with freeware VST, but art is all about limitations etc. blah blah :)