This didn’t fully register when it came out last Thursday (had other stuff on my mind, I guess), but I still think they should have done this for the Raspberry Pi 500 first–because regular desktop users would reap the most benefits, and it would greatly increase the usable lifetime of the device.
As to having 16GB on a Model B, it’s certainly welcome, but the value proposition is completely different–for $120 without a case, a keyboard, and a power supply, if you want to do “regular” (non-GPIO) computing (Linux or otherwise) you’re probably better off buying a mini-PC (which these days will also be low-power and possibly even fanless).
Even though it’s true that Raspberry Pi continues to have excellent software support when compared to any other ARM single-board computer, any Intel N series will completely outclass it (and have pretty much zero software constraints).
And you always have the option of adding an RP2040 as a USB peripheral–which is sort of what the Radxa X4 does, really.