>> Maybe Apple would have slightly higher storage capacities, but... we're talking about a relatively marginal difference compared to the gulf in storage capacity between these microdrive MP3 players and the flash based MP3 players of the time. An advantage, but not a revolution.
Regardless, it turns out that it wasn't even a capacity advantage, since the Personal Jukebox[0][1] was released in 1999 and offered 4.8GB of storage in a package that weighed 300g instead of the 185g of the 2001 iPod. A difference in weight, sure, but... modern smartphones are often between those two weights, so a few extra grams would have been fine and the Personal Jukebox would have flown off shelves, if storage capacity was the defining feature.
Just telling a compelling anecdote doesn't make it accurate. Apple had other advantages at the time, including the scroll wheel and iTunes, as well as brand recognition. Based on the evidence of what existed at the time, I do not think storage was the compelling thing that made iPod more of a success than the Personal Jukebox.
[0]: https://www.pcworld.com/article/520590/evolution_of_the_mp3_...