I haven't checked the Azure DevTest Labs yet, but I suspect it doesn't have the same ease and lab shareability as Azure Lab Services, does it? I really like the fact that you just edit a template then easily duplicate it to a large number of people in a cost-efficient way. The ability to invite people outside of my organization and control the number of hours they can use their own test VMs is really a killer feature of Azure Lab Services.
Do you know if expanded storage is coming soon? There's a feature request with a few other people running into the same issues I do, but it's unclear if this limitation is being prioritized or not. The fact that a blog post with tips to save on disk space at least shows that the need is understood, but at the same thing labs using nested VMs cannot realistically fit inside 128GB. I sacrificed one VM to go back down to 4 VMs, but a lot of features in a Windows domain require a lot more VMs to correctly demonstrate.
https://feedback.azure.com/forums/320373-lab-services/suggestions/36495472-be-able-to-add-additional-disk-space-to-the-vms