That's not true. There are already a few microcontroller based C64 emulations. The specs for this chip with its 4 cores could easily emulate the C64 if you added some external RAM.
I wouldn't have thought there would be enough I/O pins for ram after you've added joysticks, keyboard, display, sound & some storage. Unless you used serial for everything and added a bunch of custom external glue. This defeats the point as the cost starts going up & then you might as well use one of their more expensive chips.
I would guess they do development versions of these, even if it's a OTP loader and you test you code running from ram. Some older OTP chips were internally just eproms but with no erase window, if that is the case here then development ones might just come with a window. There is no way anyone would be able to do anything with them if you have to throw a chip every time you make a change. Development versions will be more expensive though.