I always go for 720 or 1080 despite having decent 4K TVs. My reasoning is file size too but because I don’t have a ton of space to spare for all the stuff I want to store. I have about 2TB left but that’s going to get used up eventually.
There are some things I’ll go for the high quality stuff like Super Mario Bros which looks amazing but that’s rare for me.
30GB for one movie is nuts.
Don’t forget the lawyers. Where would Nintendo be in 2024 without those guys and gals?!