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.
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.