That is absolutely not an MCU class footprint. Anything with an "M" when talking about memory isn't really an MCU. For evidence I cite the ST page on all their micros: https://www.st.com/en/microcontrollers-microprocessors/stm32...
Only the very very high performance ones are >1MB of RAM.
(And I would argue that the ESP32 is an MCU even in this configuration — mostly because it satisfies ultra-low-power-on-idle requirements that most people expect for "pick up, use, put down, holds a charge until you pick it up again" devices.)
So, sure, if you mean the kind of $0.07 MCU IC you'd stuff in a keyboard or mouse, that's definitely not going to be running Nerves (or any other kind of dynamic runtime. You need to go full bare-metal on these.)
But if you mean the kind of $2–$8 MCU IC you'd stuff in a webcam, or a managed switch, or a battery-powered soldering iron, or a stick vacuum cleaner with auto suction-level detection, or a kitchen range/microwave/etc with soft-touch controls and an LCD — use-cases where there's more-than-enough profit margin to go around — then yeah, those'll run Nerves just fine.
The Sub <$1 you refer do will have <100k of these. (STM32C0, G0 etc)
ST is actually moving away from the 2Mb MCUs, and instead offering ~1Mb with Octospi. I believe the intent is to use offboard flash if you want more. (e.g. the newer H7 variants)