The target applications are SoC sub-blocks or small mixed-signal ASICs that require a compact and efficient microprocessor for programmable high-level control. There are many 32 or 64-bit RISC-V or ARM cores that try to fill this niche, but prove to be inefficient solutions given many of these applications only require 16-bit precision.
Unfortunately 6502, 8051, Z80, and various other architectures from a similar era already fill that niche.