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They didn't choose 1 or 4 MB, but 4 and 16MB.
There were no 1 MB config in the stores when they came out, the Falcons were either 4 or 16 MB, despite some advertising to the contrary, Atari didn't want to sell Falcon 1MB.
With 2 MB, MultiTOS can't be used, there's virtually no RAM left to do anything else useful.
With 1 or 2 MB, in audio alone, you can't do anything if you're processing samples at 49KHz in 16 Bits.
Atari also wanted to make it a professional DTP machine in Germany (coz Calamus), and 8 MB wasn't enough. In fact, some people preferred the TT because it allowed configurations beyond 16MB !
A year later, 1 MB config was released by certain retailers to enable customers who wanted 16MB to buy daughterboards from third-party manufacturers (with support for SIMM modules), which enabled them to significantly reduce costs compared with Atari's memory cards!
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