But video games are by far the most common and easy way to burn through hundreds of GB of storage in a consumer PC. Except not every PC user is in to AAA gaming, and all of that storage capacity usage can be freed up quickly and easily when free space starts running low—again aided by cloud storage and fast internet speeds, because games can be re-downloaded with relatively little inconvenience.
Probably the biggest new class of computer applications with heavy data storage needs to crop up in recent years is generative AI. But models like Stable Diffusion are relatively small compared to mainstream consumer storage capacities, and bigger models like GPT-3 and newer are exceed local compute and memory capacity by a far wider margin than they exceed local storage capacity, so they're stuck in the cloud for now.
There are real reasons to expect consumer storage capacity needs to grow more slowly than they did in the 1990s, and there's real evidence that they have been growing more slowly in recent years. Just pointing at a trend from several decades ago without even trying to think through whether it's still relevant is not a useful observation or insight.
I pointed out the trend because not three years ago, you could buy the latest model iPhone with 64gb of storage. Today that number is 128gb. So while we have got better at moving transient data off to the cloud, I am not really sure that our data creation or consumption is nearing any peaks.