Yes 200 amps is a lot of electricity.
Most homes use way less than 200 amps of electricity per day and not everything electrical is on all the time.
If you used 200 amps of electricity per day then your electric bill would probably be at least $500.00 or more per month.
If you have an electric heating system in your house then you could use a lot of electricity but most houses don't need 200 amps of electricity.
I have 125 AMP electrical service to my house and never have I tripped the 100 amp breaker that is inside of it.
I see no need to upgrade right now to 200 amps for my electrical service but some houses may need to.
Most new homes being built now have 200 amp electrical service installed even though the new house will never use that much.
Even with central air conditioning running you're likely never gonna even use the 200 amps of electricity but it can be possible.