Default specs matter a lot for worldwide availability and affordability, as well as for the willingness of people to spend a lot of time creating free software for it.
520KB of SRAM is actually on the high end for microcontrollers. It doesn't seem like much but SRAM is on-die and significantly lower density than DRAM. For comparison, it's the same type of memory used for CPU caches, which are also small!
You can easily find dev boards with 8MB of PSRAM online if you need it. Or you can buy the PSRAM and hook it up yourself. If you still need more memory than that then you're looking at the wrong chip for the job.
I have always wondered kind of bandwidth you could make by multiple channels of PSRAM driven by PIO/DMA. Individually they're not so speedy(although the APS6408L-OCH-BA seems pretty crazy) , but how many can you run simultaneously. In terms of the RP2350 it would be fascinating to see how many times a second could you replace the entire contents of SRAM.
PSRAM is a possibility that I have explored for offloading the delay line buffers, which occupy quite a significant chunk of SRAM at the moment. It should be fast enough.
Yes, I was thinking of it more like bank switching.
Although, going back to the start of the thread where the suggestion was adding more RAM to future chips perhaps the request could be for support for multiple channels in the future.
It;s the age old question of parallel Vs serial Vs multi channel serial.