Also, cloud service typically move your older stuff to colder/slower storage which are painfully slow to retrieve whenever you decides to do it. I realized this when browsing some old pictures before closing a google account I had not been using for years except emptying the gmail inbox every few months.
I personally prefer having a local copy of my files and syncthing them to my NAS at home (which is itself backuped in a storage in the cloud).
If you have 512GB I don’t think you really experience the worst of it. A lot of bugs are just Apple creating humongous temporary files before they are deleted as they age. Unless you check every day you don’t really know how much is really being used. You don’t really experience these crashes, and you have no skin in the game to make an informed comment.
But I picked up a 16e for my son a few months ago, with 128GB, and yes, we're running into issues with storage space when it comes time to do an OS update. Between local music and photos storage, base storage, and the image for the new update, two or three times now we've had to delete stuff temporarily in order to get the update going. So I'm happy the new base is 256GB, at least that will probably last us a couple more generations before ~~640KB~~ 256GB is enough for everyone.
Performance nosedives, then it starts bootlooping randomly, and eventually you can't even delete stuff because there's no space to delete things.
You resort to randomly trying to remove apps, but sometimes that fails because of the stability issues.
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The only reason I replaced my 12 Pro was storage, and I made up my mind never to skimp on storage again.
That phone lasted me 5 years and could easily have gone several more, so I see it as an extremely cheap investment across the lifetime of the phone.
I need storage because Honkai: Star Rail is 32gb and I like being able to have more than one game on my phone.