For me it's not about actually hitting pan on my products - that's never going to happen with many of them, including blush, highlighters and eyeshadows that I'm really glad to own. For me, it's about limiting my collection to items I really enjoy and will use.
I never hauled collections until 2012 - for almost 20 years I've stuck to MAC's permanent products and have purchased duplicates of many favourite lippies. I built up my collection last year and had a lot of fun doing it, but I now have virtually everything I could imagine wanting. If a product comes out that I love and that I think is different to what I have, then I'll get it. I'm not looking to buy all the things I like in new collections though - it feels duplicative at this point. I've recently gone through everything and gifted away my buying mistakes. I don't like keeping stuff that will never get used.
My collection currently fits into one drawer, and I'm committed to keeping it this size. I know everyone will say that it shouldn't be in my bathroom, but I've stored makeup that way for 30 years and never had a problem. I do keep those moisture packets in with the products and the door is kept open in our master ensuite. It's really not a damp environment. I keep my skincare on the vanity and my F&B in the fridge - I refill a sample jar every 2-3 weeks and keep it in my drawer. My few backups are kept in my bedroom closet.
I know this is small by Specktra standards, but it's all (really more than) I need.