It was also for a low-cost audio application, but it wasn't a toy. This was back in 2001 or so. The MCUs in this article all only have ~1KB ROM, which wouldn't have been enough for our audio samples. We needed >256KB. The "4-bitness" was just incidentally what Winbond offered with a large ROM at the time. However, the SunPlus that we later used in the toy also offered a large ROM with an 8-bit CPU for a similar cost. So, while I can't authoritatively say that 4-bit is dead, it does seem like there are a lot of alternatives in similar price ranges now.