It's largely the former, but I also don't see that many people still having the data hoarder mentality of the recent past. With online streaming, gaming platforms, gigabit internet, and so on, fewer and fewer people still keep massive numbers of big files on their drives.
I've always preferred to have the stuff I own at hand and not on some nebulous "cloud" that can disappear at our benevolent corporate overlords' moment's notice, but I definitely belong to a rapidly shrinking minority of "old-school" computer users. The newer generation seems to have no problem keeping everything on some other people's remote computers, from their games and movies to their porn collections, personal videos, and so on.