The fist case doesn't change anything about nature of Bitcoin being a payment system and doesn't hurt anyone. The second case does turn Bitcoin into a cloud storage and is greatly damaging it.
Yes, and that is what cannot happen. Bitcoin is not a cloud hosting service, which allows you to store things forever, at an excellent cost.
But, I believe that a solution will soon emerge from the developers. Afterwards, the support of the entire bitcoin community will be needed to actually be able to implement it.
Will we soon have a new Bitcoin fork, Ordinalcoin?