I do not and have never made an image backup.
Yet I am getting along just fine after many years of computer use. Amazing as it may seem
I only have a media disk for reloading an OS and my files are backed up on several USB thumb drives
I don't see anything amazing about this at all. This is still [more or less] a viable backup plan. Nothing says viable backup plans MUST include image backups.
No giant main drive required and no giant external storage either. I do not even have cloud storage.
Again, not required.
It is important to note that for many - if not most of us - that it is our "user data" that is most important to have backup copies of. We can always buy another copy of Windows, Office, our games and other programs, and then buy a new disk drive and re-install them all for just a few $100. Painful perhaps, but not heartbreaking.
But it is all our personal documents, business and tax documents, work and school projects, emails, precious family photos that are priceless and potentially irrecoverable if lost.
I have a current image file but that is really just for convenience - just in case. But it the backups of all my personal data that I am diligent about keeping safe.
I do however, suggest you use something other than flash drives and a single attached disk for "storage". Flash drives were never intended for permanent/backup storage. They are just too volatile in terms of their reliability as storage devices, and their physical robustness. You can zap them with excessive ESD just by sliding them out of your pocket. You can physically damage them just by dropping or stepping on them. And they can simply be lost easily.
As for the attached drive, do you back it up? If so, to what? If not, why not? A backup plan MUST include multiple backups. Understand it is not uncommon for thieves who break in to a home to steal all of your electronics, including attached drives. Then where will you be? Or what happens if your house burns down, is hit by a tornado, or flooded? And then you lose your computer, the attached drive, and the flash drive you keep in your computer desk.
So if you maintain any personal documents you don't want to lose, you need to have multiple backup copies and at least one should be "off-site", or at least hidden safely away in a different part of the house.
When I had my computer repair shop in my home, I kept a current copy of everything on my computers in the safe deposit box at my bank. Now I have an older, networked computer I repurposed as my NAS (network attached storage) device that I drag and drop copies of my documents to on a regular basis. This computer is located out of the way in a different part of the house. I still keep a copy at the bank, but since I have slowed down and slipped into retirement, that copy does not need to be as current as little "new" content is being created.