ATM's in the Netherlands cap at 50€ (so any higher denomination must be requested at the bank), due to people using contactless payments frequently there's less incentive for cash. Even then, why did the EU decide to print 100€ or 200€ notes (forget about a 500€ note as they've stopped printing more since 2019 but it is still legal tender). Stores refuse to accept a 200€ note for a 150€ purchase, why do these denominations exist?
Even if you don't personally use them for day-to-day transactions, there is still a need for large denominations for large transactions. Appliances, cars, etc, anything you might be buying private party from Facebook marketplace/for sale ads that will cost a lot and carrying a high quantity of lower denominations would be impractical.