Well yes, they spent the last few years making an 8K full frame camera, so it's implicit to me that going for 16mm size was for economic reasons and that their goal is larger format. Nothing wrong with that, in fact, many camera companies started with small sensor, simple cameras (Z Cam E1, BMCC 2.5k) before earning the credibility to sell more expensive, feature-rich models (F6 Pro, BM 12k).
I read a comment years ago that the 8K LF model was going to be $13k or something. Presumably they realized that their 8K LF dream might not work out on a first model. (I've been checking on Octopus every few months since the announcement in 2019, so at one point or another I've seen most of their posts and comments)