Given that's the case, do you have an explanation for Microchip's development of numerous new AVR product lines since their acquisition of Atmel in 2016?
The RP2040 itself 'only costs $1' without the flash chip it needs. Then what if you need an analog comparator? Another chip. Now what if you want a medium current PWM output? Another chip. AVRxt can output as much current on a single pin as an RP2040 can through its entire package. The two are simply not competing in the same space. AVR isn't strong in computation but is a great general purpose brain for many simple real world interfacing machines.
You've got it. They certainly don't create these IOUs for -any- reason (I'd wager there's legislation that strictly governs this.) In practice deposits (customer assets/bank liabilities) are created simultaneous to the customer handing over an asset of equal value: their promise to pay down the debt, such that the books balance.
A side note to think about: Although the memes might have you believe that 'money' is being 'printed' by the bank, in actuality the true creation is happening on the side of the customer whom, from nothing, manifests an asset into the world: their promise to pay. Intentional or otherwise the system obfuscates this fact.
The only ledger that two different banks share is the ledger of reserves at the central bank. The bank deposit that is created through the mortgage process has no means of escaping the buyer's bank and into the seller's account -- it's an artifact of the contract between the buyer and their bank. The seller's account grows only in response to a bank-to-bank transfer of reserves or a huge cash withdrawal and deposit (which are essentially similar.)
If a bank wants 'someone else' to have $10, such as a customer at an ATM or a different bank, they indeed must hand them literal cash or 'wire' them $10 of reserves.
Banks, through 'loans', don't create cash or reserves, they create local bank deposits. One flows freely around, the other is confined to a particular institution.
You are able to do almost exactly what a bank does: My holding a $50 IOU issued by you is like having a $50 balance in a chequing account. The only way I can 'transfer' that to someone else is either (1) having you give me literal cash that I can give them, or (2) forfeiting my IOU and having you generate one for someone else.
(1) Works because cash is universally accepted.
(2) Only works when the other party is part of your IOU club. Translated to the world of banking: they are a member of the same bank!
Makes sense but is completely wrong. A bank can credit customers with any size deposits at any time, though in reality they will only do so with an equal sized debit, and within the confines of regulation.
I think much confusion comes from association with the word 'loan'. In reality, a bank 'loan' is actually an extension of credit.
You are indeed 'magically' credited, in an instant, with say $100 of new deposits which is a liability to the bank. Simultaneously the bank gains an asset: your signed promise to pay that $100 or otherwise forfeit equivalent collateral.
A key point here is that this new 'magical' deposit is not the same stuff as cash or reserves. It is confined to that particular institution. Nothing that is being 'magically' created can escape the bank. Only cash and reserves can do that.