You're not going to create really large systems for it, but if you want to work a gas pump or a hot water heater or make a tester for 74xx chips or a display controller for persistence of vision displays it is great.
You can code for it in C but I feel like I'm strangling puppies when I do it because it is moving the stack pointer around and doing things to support C calling conventions that I don't really need for the programs I write [1] AVR-8 assembly is fun but I still write C for it because if I need a bigger device I can recompile it for ESP32 or ARM.
Something weird about AVR-8 is that it does not have a unified address space, so in the case of that display controller, it is easy to spool graphic data out of the ROM, not so easy to upload a small amount into RAM (via serial port) and combine that with data from the ROM. I've had the crazy idea of making a AVR-8 on AVR-8 emulator (would get me to A-rank if not S-rank on AVR-8 assembly) which would make it possible to upload tiny programs into RAM but that probably requires software emulation of unified pointers for program memory.
[1] https://betterembsw.blogspot.com/2014/07/dont-overflow-stack...
Which is just bizarre since, again, we have 8086, we have MSP430. And if you are fine with most of your data being 8-bit (which is not that uncommon), there is e.g. 8051 which is still quite popular.
https://developer.nvidia.com/blog/nvidia-arm-and-intel-publi...
Also, a simple 8-bit CPU like the 6502 is just 3.5k transistors while simple 16-bit CPUs like the x86 or 68k are somewhere between 30k and 70k transitors (e.g. I wonder if a 6502 running at full throttle still requires less energy than an x86 or 68k doing the same work in the same time).
I don't think any "real" x86 processor from the 286 onwards had under 100k transistors.