What would be the point in churning out cheap 1 TB drives versus more expensive bigger drives that have a lower cost per byte?
It's an interesting question, at the end of the day spinning rust will break, and I definitely would not be comfortable in having 16TB of data on one drive in an array, the rebuild time would be horrendous.
I for one would rather have larger arrays of smaller drives (although I'm not sure that 1TB isn't too small nowadays as you say.
But there must be a sweet spot where price-per-byte and the time taken to recover from a failure intersect, although I haven't looked into it, I would guess around 4TB.