I can't comment on your first two points, but in the context of video editing, yes, 500MB is cheap. Most of us photo/videographers are used to handling hundreds of GB of data.
You’re used to professional apps which do a lot. LosslessCut is a simple, limited app (I say this as a positive) which is perfectly usable by non-pros who don’t deal with that much data.
> in the context of video editing, yes, 500MB is cheap
This type of thinking is pretty common in HN, where they live in a rich country. Then the same people apply their situation to whole world. It's not same in developing world. People still have to manage their savings for storage.
