"Over priced".... it is what it is. If you need it, it's a lot more convenient than external drives and it is very fast storage. But yes, apple storage in general is expensive, so just buy what you need. If you need 2TB to be comfortable with your usage then buy 2TB - but don't buy 4 or 8!!
Depends a bit on whether you're getting a laptop or a desktop - in the first case there's a clear advantage to having all your data on the internal drive so you don't have to faff around with external drives on the go - although you can still get a transatlantic flight or two's worth of entertainment on a USB stick! With a desktop, it is no great problem to have external drives or a NAS for anything that you're not actively working on. Usually, most of the speed advantages of Apple's super-fast SSDs come from having the system, apps, temporary files, swap etc. on there. Things like backups, archive, media libraries etc. belong on external/NAS anyway (esp. on Macs where the internal drive dies with the machine) and probably on "spinning rust" - still cheapest for large backups.
I think, these days, there's a big gulf between "regular" workflows and a few specific terabyte-guzzling applications like 4k/8k/HDR/HFR video
production or ML training which tend to define the "state of the art". For general use, most media
consumption up to and including audio editing and a lot of photography - 1TB is more than adequate (25,000 RAW photos, 200 HD movies, 70 days of CD-quality audio - shoot me if I've got my guesstimates wrong). I do have some 2TB/4TB
externals but they are for things that accumulate over time (e.g. TM backups and archives) and media libraries for streaming devices.
One thing that
used to be a storage killer was Bootcamp - and the need to semi-permanently partition off a significant chunk of hard drive, inefficiently dividing your free space between MacOS and Windows. VMs are more efficient - with expandable/shrinkable virtual discs which can easily be archived and restored - containers, potentially, even more so. Plus, I'm finding much less need to run Windows, full stop.
So, yeah, 256GB is too tight if you're going to be installing "pro" apps or doing almost
anything with media, 512GB is adequate and 1TB is perfect for most purposes. Sure, if you know your current 1TB drive is bursting at the seams and it would take more than $400 worth of your time to clean it out, get 2TB but that's not what I'd call "future proofing" (...and you should consider an old phrase including the words "eggs", "one" and "basket").
If you really need over 1TB of fast, internal SSD, I'm not arguing, but you should know the specific justification & may also be better off with
multiple, per-project, external TB/USB3.1g2 drives.