I think in the server space the story is more about Chinese autonomy from US regulation/control. As long as they're dependent on closed western IP there is risk of being rug pulled, that having their own RISC-V IP eliminates.

In the embedded / microcontroller space it's a different story. License cost there must be absolutely key, and I think less vulnerable on a per unit basis to the RAM etc storage factors you mention. I don't actually know the numbers but I'd expect that as a percent of total BoM cost the ARM license must be higher for microcontrollers than bigger machines? Maybe someone more qualified knows the answer to this.