More I think about it the more I think the 6500xt is just the kind of product the market needs. There's been no competition at the 1050ti / 1650 level of the market for too long, and for pure gaming it does the job. It beats the 1650 in most scenarios while being cheaper (currently). Due to its limitations and apparently being specifically designed to be produced cheaply in large quantities it actually might stay at that price too.
Sure it's no good for streaming or mining or high quality textures etc, and at pcie 3.0 its value proposition is weaker, but for budget gaming it does the job, and just the fact it exists might push prices of other products down.
If I was building a budget gaming PC at the moment and wasn't interested in streaming or anything, then I'd certainly be considering something like an i3 12100 paired with a 6500xt. Seems to be the best bang for the buck in this price category to me.
If you want something that performs better than the 6500xt then I guess the next product up is the 1660. Only problem is that's another £150, so not really comparable.
The rtx 3050 might well blow it out of the water, but I'm just pretty sceptical that rtx 3050 pricing will be anywhere near 6500xt pricing.
It is obviously terrible value going by the standards of a couple of years ago, but in the current market it competes well imo.