If we are talking 10% slower, than I don't care. If we are talking 50% slower, then I will figure out a solution to make a 3.5" drive work.
Definitely a larger gap and you should care.
The good part is: since you're focusing on large file editing, you're basically in the best-case scenario for HDDs.
More or less:
3.5", 7200RPM: ~200MB/s
3.5", 5400RPM: ~150MB/s
2.5", 7200RPM: ~120MB/s
2.5", 5400RPM: ~90MB/s
Of course this will be affected by load and how much capacity you use. These numbers are for scaling expectations, not forecasting actual performance.
You have to rethink the general workflow.
Can you afford a small drive in the PC and larger storage externally?
Large, fast 2.5" HDDs are quite expensive actually: a 1TB models (say: WD Black) cost roughly as much as 500GB SSDs.
Miss 2 fancy lunches and you have a 1TB SSD.
And it's a single drive, so either way a small part of the PC cost.
The real HDD value kicks in when you need a lot of storage and you go for high-capacity 3.5" models.
So, the problem with your question is that the size of the disk isn't directly related to the speed of the disk.
I feel like there's a bit of confusion in this topic (even before it derailed to backups and SSD endurance

).
Yes, disk size (actually: platter size) affects transfers.
Essentially, longer (outer) cylinders mean more data can be accessed in a single rotation.
This has a significant impact on sequential r/w and - to less extent - also on random access.
For the similar fundamental reason, more dense (i.e. larger capacity per platter) drives have better sequential transfers as well. That's the main reason why HDDs are getting faster over time.
A 5.4k RPM 2.5" HDD will almost certainly be slower than a 7.2k RPM 3.5" HDD.
Yes.
But a 10k RPM 2.5" HDD will almost certainly be faster than a 7.2k RPM 3.5" HDD.
"It depends".
I don't think I've ever seen a 2.5" HDD get past 100MB/sec. A decent modern 3.5" HDD tends to do 150-200MB/sec at best.
Well, actually there are WD Black 2.5" 7200RPM models that will, easily.
Also, some of the high-speed drives from the past, like WD VelociRaptor (10kRPM) or Seagate Cheetah (15kRPM) also used small 2.5"-like platters - they're just easier to spin that fast.

And whereas Cheetah was a normal 3.5" form factor, VelociRaptor was actually a proper 2.5" HDD sold with a detachable 3.5" radiator.
And in my experience, when an SSD goes faulty, you're lucky if it doesn't go completely titsup at a moment's notice.
That's something I agree with, though. Because of the mechanical nature, you usually get some signs that a disk may die soon (noise, heat, bad sectors etc).
SSDs basically look perfectly fine up to the moment they die instantly.
But this shouldn't be seen as an SSD disadvantage.
In the end - they work better near the end. It is a plus.
And you should never postpone backups until a HDD "shows signs".
