At that point I'm not sure if there's a point running Linux on such a small device. With 64MB RAM, you won't even be able to run a Python interpreter, let alone any useful services.
You'd probably be better off using a microcontroller. The ESP32-P4 for example has up to 32MB in-package RAM and can deal with extra external SPI RAM.
Without the overhead of running a Linux Kernel, you might even get more performance out of that.
Reasonable points about the CM boards but I don’t see much attraction of the CM0 vs CM4 or CM5. Given that they aren’t after cost minimization, might as well take the extraperformance.
The CM0 is smaller and consumes much less power than a CM4/CM5. It's also way cheaper. They give a range of $18-26, probably depending on how much storage is on there.
In my region the CM5 is €50-€150 and the CM4 is €32-€102. That's a huge difference.
So if you just need a small, low-power compute unit for a cheap handheld device, the CM0 really does make sense.