It would but I’d like more of my 25k+ photos and videos accessible on my phone, and 128GB will delete most.
I’m curious, how much of your actual iPhone storage is the Photos app using?
I also have a 2TB iCloud storage plan with 25k+ photo library (560GB of iCloud space) and Photos is only using 7GB of storage on my 256GB phone. And my phone is currently showing 177GB free.
Unless I’m zooming all the way in, I can’t see a discernible difference in photos, and old videos start playing in hi-res within seconds so I don’t have any issues with how the Photos app is behaving, but I’d argue that more of the photos should be available offline, unless the space is actually needed.
Since I have iCloud storage plan, each year I toy with the idea of dropping down to 128GB and each year I go with 256. This year may be the one where I actually go with 128.