Hi Jacob! this is an interesting discussion. What type of files are the students talking about when they requested more than 10mb?
I think you have a great point on ensuring the best possible experience in the different conditions that may affect it from the connection/loading perspective and there could be alternatives depending on their use case.
For example, if this is about videos, students could use alternatives such as youtube, vimeo, etc, and use links on their submissions. Those platforms are optimized to provide "adaptable bandwidth" and bitstream options to match client conditions when loading. Instructors could provide instructions on the activities to guide students on this. There´s another factor to this and that´s the fact that this could help students to familiarize with such tools, which are becoming more and more important in our economies and could be considered part of a basic digital citizen skillset in some contexts.
Another option could be to use repositories https://docs.moodle.org/38/en/Repositories42
Maybe something like 20 or 30mb could help with large size PDFs or documents with too many images that are not optimized.
Looking forward to know more about the uses cases. Thanks for sharing!