In general, the price of storage is so cheap these days that this becomes a non-factor, imo. There may be fringe cases where someone would need to increase hardware capacity (i.e. invest hundreds to expand NAS capabilities) but on the whole, I’m not sure how file size becomes a relevant detractor. There are plenty of scalable cloud solutions as well that make sense as a multi-purpose alternative (e.g. storing photos, movies, etc. in addition to audio files).
As others have pointed out, sometimes your audio file format options are limited.