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Conduit should run fine up to many hundreds of users on a single node as far as message passing goes. For the storage part, you'll only operate as well as your storage solution. I'd honestly expect to invest some money on that part if you want the system as a whole to operate well, because some of the Matrix message handling is synchronous to media if attached to a message.
Depends a bit on how much images and videos get shared. If its mainly used for chat by a bunch of people and a few gifs and stickers in-between, it shouldn't consume that much storage. But sure if you frequently share all your vacation photos, the cache is going to grow fast.