For example apple requires larger storage to even use prores:
https://support.apple.com/en-us/HT212832
Or Baldur's gate 3 takes 123GB of storage for the install.
Gamers are an exception, but gaming is a niche market. Most people using computers are using laptops with integrated intel gpu and never install any game.
I don't think this is about capacity, but rather it's about performance: small SSDs are slower because they have fewer flash chips to write to in parallel. But that effect goes away as you move up to higher capacities and hit other bottlenecks; even high-end PCIe gen5 SSDs that are too power-hungry for anything other than desktops and servers reach full speed by 2TB.
This to me, it's the opposite of observably true. You would think large drives would be most in demand for personal use.
I'm not sure that cloud storage kills anything. There's reasonable mistrust in it and much of the world lives with unreliable infrastructure..
cloud storage doesn’t make local storage irrelevant. just less relevant. drives still fail, new machines are built, etc, etc. and when that happens to the average consumer, they don’t seek out the biggest drive available. just whatever is down the street.
and just down the street doesn’t want to stock dozens of massive drives, lest the average consumers balk at the prices.
Most of the people in my life rely on cloud storage for their digital lives - mostly Google Drive or iCloud. It’s the primary destination for photos and videos for many people, and services like Google docs both store files and remove the need for traditional local storage.
Every year I have more pictures and more documents and more stuff in general to store. That or I have to fuss with pruning things, which is a PITA and I'm reluctant to do.
Also - it starts getting very spendy for cloud storage after a few TB.