Bigger processors with more RAM have always been available. The question has always been whether you're going to use a $20 processor when you could do the job with a 50¢ one. It's the difference between your product being cheap and disposable, and you getting to choose your margin based on your strategy; and not being able to move a unit without losing money, hoping to sell yourself to someone who knows how to do more with less.
I'm an Erlang fanatic, and have been since forever, paid for classes when it was Erlang Training & Consulting at the center of things, flew cross-country to take them, have the t-shirt, hosted Erlang meetups myself in downtown Chicago. I'm not prototyping a microcontroller application in Erlang if I can get it done any other way. It's committing to losing from the outset.
edit: I've always been hopeful for some bare-metal implementation that would at least almost work for cheap µcs, and there have been promising attempts in the past, but they seem to have gone nowhere.
AtomVM runs on esp32, right? It's not an ultra-cheap microcontroller, but it's pretty cheap. AtomVM isn't BEAM either, though. I have no experience with AtomVM though... it didn't seem like a good fit when I was building something with an ESP32 (I didn't see anything about outputting to LCDs, and that was reasonable with arduino libraries... I also saw a library for calendars and thought that would work for my needs and then I got dragged into making it work better), and it would have worked for the stuff i was doing with ESP8266, but I didn't know about it when I was shopping for boards, so I didn't want to pay extra.