I agree with Jeff. Exactly where are you seeing 200kb? That seem hugely implausible. When you open Settings, then tap your name at the top, then iCloud, what does it show for storage at the top? Seems virtually impossible it will only say 200kb.
And like Jeff said, buy more storage. You can go to the next storage option (50GB) for $1/month ($12/year). You likely spend more on two fancy drinks at a Starbucks.
You ask why Apple hasn't bumped the free plan higher? We can't answer that question as we are all users on this user to user only forum. If you've had an Apple Account for some time, the day usually comes for most users that they reach the end of the line for the free plan. I did long ago. I now pay for an Apple One account, which in addition to including Apple TV+ and Unlimited Games, includes 200GB of storage.
How to buy more iCloud Storage --> Buy iCloud+ or upgrade your current storage plan - Apple Support (CA)