There's no real need to keep videos like home movies "just eating up space" on the internal drive. Get the smaller drive and save the money.
"Archive" them off to an external drive (either platter-based hard drive or SSD).
Connect when necessary for viewing.
But normally, leave the archive "off and disconnected".
You should also keep at least one backup of the archive drive, as well.
Two might be even better.
Same for the rest of the data.
I recently bought a couple of Samsung t7 "shield" SSDs (were on sale at amazon).
Although I previously had been a "buy a bare drive and enclosure and put it together" type of guy, the Samsung "shields" are great little drives, decently-priced as well.
Thanks for the replies from everyone.
If I go the route of a smaller internal storage option and make the internal 1TB as opposed to 2TB and move my video work/library to external, I will need to keep the drive attached as the family watches the videos quite often through the Apple TV.
I have about 4000+ clips and since I made them available me through the Apple TV and the videos are no longer trapped in iMovie on my iMac, they get watched way more than they ever have now.
They aren’t archived as in never looked at anymore.
I am not opposed to moving the iMovie library (1TB) and the HVEC converted versions (400GB) to external SSD as I see the financial value in it. I want to be sure the performance of working with 4k (and eventually 8k) videos externally would still be good performance through iMovie or in the event I go to Final Cut one day or Lightroom/Photoshop for my hobby.
When something is a gift for me to pick out, I still like to think of it as spending my own money, hence the decision to be made. I still have time to change my order and go down in size to 1TB oR even go up in memory.
Looks like I’m answer to my original question is that I am not seeing anyone really say “I wish I had a bigger internal SSD and did not rely on external SSD drives”.
Thanks again for the feedback.