The other purpose is backups. Again if my backups are slow, who cares?
I care very very very much about the speed of the drive that stores my video files. I need to be able to open and seek through them quickly so I can find the clip I'm looking for. When you're working with ProRes stuff, this becomes a big deal.
Luckily, good quality spinning hard drives can be fast enough, at least for my needs. Unfortunately, they're only fast enough when they're not running APFS. :(
Nothing prevents you from putting for videos on an HFS+ volume and use it from Catalina. It just can't boot from one.
In my opinion the base included option should be a reasonably sized M.2 SSD, with an option to increase the size of said M.2, or to add a 1TB (or larger) 2.5" drive as an extra if more storage is needed.
Better yet, stop shipping iMacs with magnetic hard drives. This is 2020.