What do you guys use such huge storage for?

Might be harder to afford in addition to buying the more expensive device with more storage. But if you buy the lower priced device and cloud, it's usually the same amount or cheaper. You pay 6500 per year for 2TB of Google One storage and that can be shared among all your family. If you compare that with the extra cost of getting 3-4 more expensive devices it's worth it. With flagships even one phone is enough to make up for the difference.
I see your point and it makes sense, but I got the 512GB variant as a free storage upgrade from Samsung, hence costing the same as the base model in this case. Moreover, with file sizes (especially video) ballooning every year, the cloud also presents challenges - for example, streaming full res 4K video from the cloud will use a lot of data, especially in places restricted to 3G/4G or with higher congestion. In any case, I am glad that there exist options for both.

I really wish smartphones start putting the microSD slot and 3.5mm port back but that seems unlikely anytime soon :(
Maybe in a few years they will become "flagship"/"premium" features and we would have come circle. One can only hope. I recently purchased a 512GB microSD card and I would so love to actually buy a proper flagship and just pop it in. Perhaps an Xperia 1 will be my next device, even though they don't have some features compared to a more mainstream Samsung flagship and have far worse software support.
 
I always buy the lowest storage SKU. I can comfortably manage with a 128GB SKU even though base storage levels now are 256.
Maybe some day I will become a SM influencer using my phone to shoot tonnes of max res res videos.. :)

until then, I prefer paying for dual cloud redundancy for the convenience and safety as against keeping tonnes of data on a loss/breakage prone phone..
 
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