Depends on your internet connection. If you have gigabit fibre to the home, downloading a big AAA game isn't a big deal. If you're on a 30 Mbit cable connection, the delay between starting a download and playing a game is pretty long, so it's nice to be able to keep them on your local storage.

Your approach is atypical. Most don’t uninstall unless they’re upset with the game or space is running low.

With ISP data caps, redownloading them isn't free.

I don't understand data caps, is it a US thing?

It's a US thing, but it depends on your ISP. I have Spectrum, which doesn't have data caps, but Xfinity/Comcast caps you at 1.2TB/month, charging $10/50GB after that, or am alternativse, more expensive unlimited plan.