Required local storage for URL referenced images vs. uploaded images?

Yes, that is a big Discourse feature to ensure that discussions with images won’t become useless when those hotlinked images stop working in a couple of years.

You can disable it with the site setting download remote images to local, but it will result in a worse user experience over time.

Yes. Exactly.

We have a quite sophisticated image compression feature that will result on those images taken from smartphones be 50x smaller than what their size would be otherwise.

See Faster (and smaller) uploads in Discourse with Rust, WebAssembly and MozJPEG | Blog.

Another option is using a dedicated Using Object Storage for Uploads (S3 & Clones) to store those images, which can scale independently from your forum server storage.

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