Espressif calls the ESP32 an MCU, and at least 1/3 of ESP32 models have >1MiB of onboard PS ("pseudo-static") RAM (i.e. DRAM with its own refresh circuit.) At least 20 of the ESP32 models do have 16MiB.
(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.