My S20FE with heic extension stores 12MP images mostly under 2MB.
Yes, 12R 256GB one is a great choice. Don't have high expectations from camera, especially the ultrawide. Primary rear cam & selfie cam are good even though not the best. Higher battery capacity + 8 Gen 2 makes for a great combination.
S23 has been going for 55k for 128GB model & 60k for 256GB. If you are willing to wait a few months (there's a sale in May usually, else in Oct sale I expect it to be under 40k), this will be a better choice. Cons of S23 vs OP 12R will be slower charging, lower battery life & smaller size. Pros of S23 - Smaller size (this is kind of personal preference), lighter in weight, better UI, better camera package with good ultrawide & telephoto. Both of them will get updates till Android 17.