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Right now I have 3 games installed out of 814.
If I've not thought about the game in a year, why waste the space for it? Re-downloading isn't that much of a bother.
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UPDATE: currently only 9/918 (~1%) installed on laptop
My internet connection is not bad (50mbit) but it can still take some time to download some of the bigger game titles with 50-60 GB+.
I used to have more installed then worked out it made it even less likely I would finish a game since there were so many other options available.
I install a game that I want to play, but I generally don't deinstall them afterwards... until I run out of diskspace and need to clean up.
I install when i want to play one... not that i have to worry about space, my main rig has 1TB ssd and 2 6TB storage drives. I just like keeping things clean.
This is what 13 years of steam sales does to a person. Control your spending before it controls you. Wishlist everything, wait for sales. I'm really trying hard to get through all my current games before I even buy another though. But I seem to have failed at that too.
Used to have everything installed, after I got my new rig, I've keept it at a minimum.