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The tension between repurposing existing hardware versus custom design is a familiar tradeoff in hardware startups. The STC8 memory constraints are real but the bigger issue is the ecosystem lock-in you identified.The Afmega328 path gives you platform flexibility which matters more than cost once you're past initial prototyping. I worked on an IoT project a few years back where we went cheap on the MCU early on and spent way more later migrating because we couldn't add features users expected. The insight about needing dreidel software is spot-on because the spin animation is what sells the magic of combining physical and digital, not just the randomization.

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