It's a borderline thing. The official Commodore REU only supported 8x the RAM. But you could modify it yourself to 32x. Creative Micro Design also had the third party 1750 REU which supported 32x RAM. (2 megabytes.)
So it is somewhat period accurate, albeit very expensive at the time.
Imagine where we would be today if this was where we were on the C64 in 1982. If we had the concept and ability to create these models and run them on machines and how much that would have evolved by now.
We did. People have been doing impressive AI demonstrations before they're was hardware to run it. E.g. Turing implemented a chess playing program, but had to have his colleage execute it manually to play a game.