The OEMs buying APUs to use in laptops and SFF desktops were more interested in cutting costs than boosting graphics performance. Users who want better 3D performance can buy a higher end laptop with a discrete GPU and juicier profit margin.
Doubling the memory width (and tripling the bandwidth) helped Apple's GPU performance substantially and should do the same for AMD. Which means that a larger fraction of the laptop market should consider it "good enough" and still have a reasonable TDP to avoid the 2" think laptop that last for less than an hour on battery while sounding like a hair dryer.
Furthermore, during the chip shortages of the last few years, AMD was actually selling broken PS5 silicon for use as a normal Windows PC[0]. If there were restrictions on selling APUs above a certain performance level, then this PC wouldn't exist.