A really helpful response - I couldn’t find this guidance at all so many thanks. However, I was not really expecting to find that Apple caters for my needs and I’m still not sure it does.
Here’s where my question came from: What’s the point of having more storage space in iCloud than on your SSD/HDD if every file in the cloud is copied onto your local drive? The key failure of Apple’s use of SSDs in particular has been their inadequate size (cut down for total product cost reasons).
The article you refer to lists four ways to manage storage on a Mac, the bottom two of which are really obvious and I do them all the time (empty trash & reduce clutter). I don’t use Apple TV or store any commercial movies/videos so the’Optimise’ option offers me nothing.
And so to ’Store in iCloud’. As far as I can see this leaves all decisions about what is on my small 250GB SSD and what’s on iCloud servers to an automated Apple system. I don’t like that for documents though I happily use iCloud Photos. My problem stemmed from pushing a large number of home videos (from a NAS) onto iCloud which promptly dumped them down to my SSD.
So the key questions for me are: Who decides what is stored in the cloud and kept off my SSD? And then: Can I get at those files subsequently on a selective basis under my control?
I’ve been using Microsoft’s OneDrive to store ALL my files because I am in charge of three choices: Which of these stay only in the cloud, which stay always on my Mac (and are sync’d to the cloud) and then have others I can download to the Mac when I use them. These last then periodically disappear back to the cloud. The key thing being that I control which of these groups any file is in with a simple click of the mouse against the filename (choosing the appropriate icon from the three as above) and being in control of my files is important to me.
Microsoft has the odd tedious aspect like filenames have to exclude special characters and there’s no doubt that when Apple gets it right their ecosystem is best used as a whole.
But . . can Apple provide for what I’ve described as my needs? I’m still not sure!