Im just wondering though, if I was to use simple recovery mode and differential backups, would the differential backups not be as large as my transaction logs?
Maybe, maybe not. Depends what changes you do.
Log backups record each and every change (the operations that make the changes). Differential backups record the net result of those changes (the data after)
The major difference would be in the size of your log files, as they would no longer need to store 24 hours of log records.
Honestly though, the decision which should not be based on 'which is larger', but on 'which allows me to meet my SLAs'. If you have a max 2 hour data loss SAL, then your current backup strategy does not support it, neither does the switch to simple recovery and diff backups option.
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: Discussions on DB performance with occasional diversions into recoverability
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