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We had full daily backups of our application stretching back to 2017, totaling six terabytes of cloud storage.

They got to the point where it cost $200/mo just so we could theoretically restore the application as it was on June 5, 2018.

I think deletion strategies will always be relevant from a “staying organized” standpoint, as well as cost.

Even if you specifically want to keep it in cloud storage, cold storage tiers would cost $6/mo.

This is not an example where you need to delete. If the value is zero, go ahead, but it's sustainable to keep that data around.

You can buy 20T drives like popcorn today.

If it's important, you don't want to just write it to a hard drive and chuck it in a closet.

True. Get two drives. One you chuck in a closet, the other you store off site.