First, the idea of lugging around an external hard drive with a notebook defeats the entire purpose of having a notebook. Of course it is possible to curate your data so that you can fit your really important items on the notebook's internal drive and keep the rest on an external that you'd mostly keep on your desk. But if you intend to use the notebook the way notebook's are meant to be used and boot from an external drive just stop.
Second, there's a massive difference between a $50 1TB rotational hard drive and an SSD which is incredibly faster, uses less electricity and not affected by bumps and jolts. Yes, an SSD is more expensive than a rotational drive and yes Apple charges a premium for its SSD storage. However, if you look around the retail market you'll see a wide variation in SSD prices and if you look closer the price differences revolve around speed and reliability. I'm not saying a Crucial Tech MX500 series SSD will never fail but its 5 year warranty speaks to their confidence in it.
Third, Migration/Setup Assistant does give you some flexibility. You can select just your Applications folder to migrate, you don't have to migrate your account. Or you can migrate your account but deselect some of the folders (top level only). So you can omit the Music folder for example but you cannot keep some of the music folder but omit others.