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First, price. The Samsung Galaxy Ultra is $1,299 for 256GB, $1,379 for 512GB, and $1,619 for 1TB (only available as an unlocked phone.
That's a $180 premium to add 256GB. You can get an SD card for that much for $25, also from Samsung. To go from 512 to 1TB is $240, while a 512GB SD card costs around $35. It's Apple levels of ridiculous markup.
Both SD cards and internal storage can vary in speed, but I would expect SD cards to be slower most of the time. And that's fine. I view it just like how in desktops you might have a large, cheap, SATA SSD or HDD for bulk storage and a fast NVME for things where speed matters.
Why would I bother with USB C file transfer? That seems like something annoying to manage- having to remember to go and back things up, transfer things over, and just generally maintain. Especially with WiFi speeds nowadays. But that is for backups for the sake of redundancy. Moving files off the phone to make room because of low storage means removing a layer of redundancy.
The Steam Deck has an SD card, as does the switch and all of their handheld competitors. My Xperia has an SD card. The Samsung A series still has an SD card, and so do most mid-tier phones. It's something useful that most people want, but Samsung and others know they can cut the $0.50/phone or whatever and the whales will still buy the newest flagship as a status symbol anyways.