Even with infinite storage, having lots of blobs can make a repo unmanageable. In order to get an 8GB repo onto github, I had to make temporary branches and and push them incrementally.

I highly recommend git-annex. It is like git-lfs but a bit less mature but much more powerful. Especially good if you don't want to set up a centralized lfs server.

Yea, I recommend git-annex too.

It's not just a question of storage, as the size of the repository increases git starts having a hard time dealing.

Binary files don't cause the issue, but because binary files don't deltify / pack well significant use of them makes repos degenerate much faster.

I heard of a web consultancy around 2006 where the Subversion repository history contained a full copy of the Rolling Stones discography in MP3.