Current and future telescopes target 10-30m mirrors, purely for light capture reasons. We’d need to put something that big in space for it to be worthwhile.
There are several aspects we could improve on the current situation: make "better" telescopes or make more telescope. Having only 1, soon 0 space-based telescopes is cutting it very thin. Having 5-10 would increase our research a lot as more things could be observed.
Of course, eventually there will be a need for large space telescopes too, probably those will be enabled by Starship. But first we should use the currently available technology to make sure we don't fall back into the level of the 80ies when Hubble dies. And use modern technology to make this a "cheap" effort vs. the extremely expensive Hubble.
You are correct - the NIR is blocked by the atmosphere. That is why we are launching Webb. Optical, however, is very much now the domain of ground-based astronomy.
Apparently they went the other way and instead of multiple Hubble-equivalent telescopes they build one which has equivalent sharpness of images but a much larger field of view, so can take images 100 times as large as what Hubble can.
https://en.wikipedia.org/wiki/Nancy_Grace_Roman_Space_Telesc...