In my opinion, I go for 1 TB SSD for reasons of ;
1) internal SSD will be separated to be two partitions. One is for OS systems and all apps. The other partition is for my working area for Photo and VDO editing. I love to have active works in internal SSD for fastest speed, no beach ball when do editing.
2) All photo and VDO will be stored in external HDD. The speed is not so important. But GB volume is most important. During transfer files to or out from internal SSD, I can do other things and come back when all transferred files are ready.
3) Buy 1 TB internal SSD from Apple, you get Apple Care warranty. I think that it is worth to have Apple Care warranty cover for 1 TB internal SSD. The Apple care cost is the same for 512 GB SSD or 1 TB SSD.
4) I will utilize 1 TB SSD first til nearly full memory. Then expanding to external SSD storage. Because external SSD storage price is always down with faster speed. The more postpone month to buy external SSD storage. The more money you can save and offset internal 1 TB SSD investment.
5) The internal 1 TB SSD is good for retaining value for resale of iMac after 4-5 years usage.
We don't know when will be OS system changing to be 128 bits. Or 4K VDO will be changed to be 8K VDO. To invest in max CPU, GPU and internal SSD is future proof.
Just my two cents of opinion.