Well, yes, this is the issue with the tiff format as well as the Adobe psd format -- huge file sizes, especially once you do editing in Photoshop that involves layers.
Fortunately, as technology grows and pumps out these devices with higher digital resolution, hard disk drives "grow" in order to accomodate this. So, digital photogs are driven to update our hard drive space to keep up. Fortunately, hard drive space has become much less expensive over the years. So, it's common to have not just a hefty internal "data drive" but also use at least one external drive along with the needed external backup drive. Drive sizes of at least 1 TB are getting pretty normal these days.
And then, you still want a workflow that is efficient. I myself do most of my processing in the Raw processor and don't use the Photoshop editor for an image unless I really need to. This suits the photography I do just fine, and I don't end up with all these tiffs scattered in my library. I use my Raw processor to export for the Web and, if needed, for an external printer, all of which is done using jpegs which can be archived on an external drive or even discarded since the Raw processor keeps all the editing data.
As to when you do need Photoshop, yeah, it has for years been considered "best practice" to have a 16 bit "project file" for meaningful edits that you will want to revisit, for the reason you mentioned. Whether this is always necessary is a workflow choice that you have to make. If you are really "finished" with the image, well, maybe not. If you have only "light" touchups that you will do in the future, or special things like sharpening or applied filters or other things that won't benefit from the 16 bit file, then, 8 bits can certainly cut down on the file size. It's up to you.