The main questions would be durability and availability. Maybe only because I am scarred by experience but "on-prem" seems to me quite obviously the worst possible way to do it.
Why not both? Store it locally for ease of access, maybe with a solid state cache, backup in the cloud for durability. Storage is cheap nowadays. The more interesting question is availability - at the current HDD sizes, "classic" RAID is not sufficient.
The same number of disks as you were using when the disks were smaller.
I'm comparing like-for-like except disk size.
> One of the more common scenarios with consumer grade hardware is a degraded array getting completely lost while being rebuilt.
Which is why I mentioned regular testing. If your disks are on the verge of death it doesn't matter how much parity you have or how big they are, a rebuild has too much chance of failure. You need to make sure they can handle a moderately heavy load.
But if you're putting them under that load regularly, a rebuild is very unlikely to be the last straw for multiple drives.