Bundling a spreadsheet app with photo storage ought to be against some competition rule... Just like Amazon has taken over so many markets with Prime...
While I agree it shouldn't be against some law or anything - we'd be kidding ourselves if we didn't assume this was a calculated move to edge people into Office365 vs. GSuite/LibreOffice + DropBox, etc...
1TB is huge, and nobody can compete with that "for free" right now. Although, as a heavy OneDrive user, I'll tell you it's not nearly as good of a product as DropBox or even Google Drive (in my limited experience with both).
The name of the OneDrive folder cannot be changed, it limits how large of a file you can sync into it, routinely gets "stuck" syncing forever (requiring a hard reset of OneDrive), has rate limited downloads, etc. It's clearly an afterthought for Microsoft - probably because they give it away for free.