As to other people keeping their library on a cloud drive successfully - I can only speak for myself, but yes, my library in Dropbox is locally stored on all my devices, as well as in the cloud. I never use the Dropbox counterpart of "File on Demand" for my Calibre library.
As my library is over 60GB by now and my whole Dropbox folder over 300GB, I have to choose my laptops and tablets accordingly. The average 256GB of storage just won't cut it.
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