The game here is yet another incarnation of rent (space) vs. own. If you opt to:
- pay for iCloud storage, you can offload much of the stuff that hogs up internal space. However, you are then on an endless rent train to store your "stuff" in space owned by someone else: complete strangers with for-profit motivations.
- avoid cloud forever rent, you need to "own" your own storage space, which will be the amount you have inside the iDevice and/or perhaps some external storage you also carry with you.
So, space renter could easily get by with very little local storage and they forever pay for using somebody else's storage space. Space owner could load up their device with owned data & media and as a bonus, have no dependency on a consistent connection to the cloud too. For example, a synched music collection will keep playing even in places with no signal.
The answer to the thread question:
BOTH, depending on how you choose to rent or own space... or even some combination of the two.
In my case, I'm mostly anti-cloud, so I buy plenty of storage and synch media & files to put such stuff on device. I have NO dependency on iCloud at all and thus no ongoing rent. I regularly do like most of us did in the pre-iCloud days: regularly synch iDevice to Mac: new photos & videos get backed up to Mac via simple sync, etc. This approach means I also don't need to burn much cellular data to stream my "stuff" (NOT stored in any cloud). This combination facilitates me paying very little for 5G and no cloud rent. Spread that savings over many years and it adds up.
Someone else may not own much of their preferred music, movies, etc... and are perfectly happy to scratch such itches for a relatively low monthly (forever) rent + other subscriptions. That person could pinch internal storage while still enjoying the core experience I enjoy as long as they have a consistent connection to their cloud/services... and never stops paying the rent. They can spend less on the hardware purchase but then more on that cloud storage + other subscriptions. Someone like me will spend more on the hardware purchase but then as little as NOTHING on cloud & subscriptions.
Which way is better? That's completely "wallet of the beholder." The cloud + subscription renter would argue about the added- potentially hefty- cost of buying a library of songs, a library of video, the trouble in converting both to be able to sync into space on iDevices, etc. "Their" library (which is actually owned by someone(s) else) is millions of songs deep, countless videos, etc.
The "owner" typically already owns a big collection and thus those sunk costs are not applied to their consideration equation. Their collection(s) is MUCH smaller and thus, they don't have access to just about every song, just about every video, etc. but only the subset they've chosen to buy in the past.