Everytime I get excited about NFTs (as they exist currently) I come back to the blackpill that the only thing that is onchain is the metadata and most of the actual NFT content is just hosted on S3 buckets

Can someone un-blackpill me?

I still think the underlying tech is cool fwiw

Most things shouldn't be on chain. Use centralized systems for what they're great at - cost & speed, and use chains for what they're great at - decentralization & consensus. Store all the metadata off-chain, store a proof on chain, and let anyone permissionlessly replicate the data they care about.