The design goal of the X16 was to try to make a 8bit computer out of modern stock for close to $100. The concept was to have an easily fixable computer with no bespoke parts.
That goal got blown out of the water due to the realities of custom system design. The costs shot up in order to fulfill other requirements like the graphics and sound. Originally, David didn't want any FPGAs at all, but had to do that to get a viable graphics port.
From what I remember others says, even the 2MB RAM might get knocked down to 1MB or less.
The entire project itself is the nostalgia of a 8bit home computer, but the need to have it connected to modern parts like mice, keyboard, and displays.