Even Raspberry Pi is an overkill. Look at with what we did tasks in 90's and we had it all good. Now look at RPi3 specs for example.
What you can do with a couple MHz and a few hundred KB of memory is great, given a little ingenuity. Of course, you aren't going to do real-time face recognition on something like that, but 99% of what we need to do is just fine with 0.1% of the performance.
So if we are still playing catch up with those environments, is just because the industry at large lacks the political agenda to push forward such technologies, and nothing to do with technical capabilities.
That said, I think the C64 thing is pretty neat, so I can't really knock it.