Good on ye peterpatter
I prefer HFS certainly for hard drives and I gather the same as you have discovered. Also I can take an hfs formatted tm hard drive running sequoia and plug it into an iMac running Mojave and then read/ extract files. I can't do if backup is formatted apfs.
I know there are others who will tell you that the sky will fall in if you don't use apfs format.
That said on the latest Mac's there is a bit more to do to set the time-machine backup as HFS and if not done correctly, on the first TM backup it will format it as apfs even if you formatted as HFS. As a customer/user I'd rather have that choice.
In your case then I'd stick to apfs, which will be done without extra set procedures.
As to hard drives: you're right, if you are just using as a backup the speed of an SSD is irrelevant leave alone the cost.
Now the size. It is recommended that the drive is greater than 3 times the size of what you are initially backing up. If 2 times the size you may run out of space in 18 months(?) rather than 36 months (just numbers for illustration)
I prefer many small drives than one large. A drive will fail sometime whether large or smaller so many drives reduces the risk. For instance among the many and varied backups, I run 2 time-machine backups simultaneously alternating every hour, noting you intend to do once a day which can be arranged with two drives too.
Your 4TB disk is going to be mostly empty so it might not be cost effective either. If the premium is not too high, your choice, I'd go with 2 X 2 TB or whatever combination rather than a large (expensive) 4 TB dive. One backup is better than none of course.
So in conclusion although I like HFS format I think you should stick to what apple gives you by default - apfs
I recommend going with many smaller drives that one large one.
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Depending how risk averse you are and how important your data is I would recommend also an additional backup rather just TM. I have for many years used Carbon Copy Cloner and it is a wonderful programme, has been so useful. There's also SuperDuper which I gather is good too but as I have never used it I can't give the same accolades as CCC.