I think the Pi units have much higher margins on higher RAM versions plus RAM is expensive, so the 16GB is indeed a bad deal. For my workloads I heavily use all onboard peripeals, GPU and CPU, but need only 1GB RAM. So I get a good deal even compared to Chinese alternatives.
The Pi 5 16GB was regarded a bad deal *at launch* for ~$170 CAD lol! I don't think there are any use cases left that make sense.