To a point, that is oh so true.
The point it's true until is that modern high-capacity disks do of course enable some things that weren't practical without them, like large collections of high-res photos, let alone digital video, or keeping your entire CD collection on a media PC. But conversely, the bigger the drive the more crap it will hold, and the more crap it holds, the more daunting the task of getting stuck in and sorting it out. It's easier to just buy a bigger drive.