1K song playlist is about right. I have been burning CD's for many years and when I first started, I created a number of playlists separated via genre or decades. Then I became aware that multiple playlists will require more work, so they all became one.
While I have 120 GB of 120 KHz / 24 bit tracks, I really only listen to those 1K songs. Sure, I add new music - usually found on YouTube, the Radio, or a Music store - and mix it up frequently to keep it fresh, but 1,000 songs represent 72 hours of music and around 7 Gigs of music. We humans have limits, and while there are exceptions to every rule, if everyone had 1K of their favorite songs on tap (to listen to free of charge), the majority would be happy. It is a sweet spot.
My local record store charges $5 per CD and provides me with $2 credit when I bring it back, so the CD cost is $3. Many times only one song off a CD makes it to my playlist, so if you are paying $3 per song for a high resolution file, then that is a fair price, at this time.
Gen Z and Millennials are the ones who are buying physical music media, not the older folks like myself who grew up with it. A lot of older folks here are under the suspicion that we and only we are supporting vinyl and CD mediums. Simply a fallacy. Sales of CD's and Vinyl has risen in the past 15-20 years. Society has not changed, young people require some place to congregate and record stores are at the top of the list. If you live in an urban area, record stores are inundated with young folks; not old geezers. The one I frequent is owned by a not so rich 20-something who knows her trade and is supported by the local music scene. Very much like the 1980's but with more music to choose from.
Streamers cost money. Adding a streamer will require another shelf and cable - much like a computer and USB cable (assuming you have a DAC) only cheaper. The laptop I use costs $150. The AudioQuest carbon USB cable ($170) that connects your laptop to DAC and is the only other one-time cost. And yes, I have an external hard drive for backup but that could just be a nano USB stick for $20 if you want it to be. They work great in vehicle USB ports.
The costs of streaming are guaranteed to rise. Monthly service costs of TV and Music is going to skyrocket in the next 10 years because competing factions in music streaming are fighting for for their rights - to own more music than the other - which then qualifies for a higher cost to the consumer. If you live long enough, you need to consider what capitalism does to the consumer. If you have ever owned a company, you know first hand what capitalism does to your business - every vendor will raise their prices year over year. Nature of the beast.
It should be of no surprise that many young people are turning to physical media. Owning for renting is a well known issue with humans. Nearly all of us would rather own. And while vinyl costs are rising, that lends itself well to being an asset in the future. My vinyl -most of which was purchased in the last 15 years- is worth far more now than what it was. Go figure. Did not see it coming, but I am not complaining.
Figure this. If you were to pay $20 for a high resolution streaming service, that equates to $240 per year. In contrast, that amount equates to a quantity of 80, $3 CD's, about like adding 7 CD's per month to your collection. I struggle to find that many CD's of new music each month. As for vinyl, I have about 1,200 records and do not buy much anymore due to the fact that I feel there is little left out there for me to enjoy with vinyl. Digital files are super convenient and can be transported with ease making it superior in all ways except the betterment of sound.