I had no idea that favoriting kept them at full resolution.The ”Optimize” setting will automatically remove originals from your phone as more space is needed. A very small thumbnail remains on your phone so you can find what you need. If you want to keep certain ones at full resolution, make them favorites.
Don‘t delete photos manually from your phone. The phone will manage its own space when “optimized” is on. Even if your phone storage is nearly full due to photo storage, ones not viewed in a while will be automatically off-loaded when more space is needed for other things. It works — don’t micromanage.
FYI, I have 37,000 photos in my library but it’s only occupying 37GB on my iPad mini. It’s well over 400GB on iCloud and on my HD backups.
Edit: From a brief check any video (including the video portion of a Live Photo) may still be offloaded.
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