I have been toying with the Pi Pico since not long after they came out, alongside other MCU I wanted something with a bit more ram, the duel core stuff is easy to use - not played with PIO as yet but plan to.
they can easily drive servos, use a PCA9685, this will take the 3.3v input on the I2C bus, then accept a 5v driver voltage and easily drive 16 servos - driving this from the Pico means creating a little bit of a driver but its not hard to do - have an example of my desk at work driving a pair of them.
they are much better for driving screens than the Arduinos as they can have a proper frame buffer inside and can easily let the second core manage actually updating things (again you need to write your own drivers but again its not that hard, its just shifting bits & bytes about)
key though is the things are dirt cheap, project I have some part on order for is a handset for a DCC++ system to use a Pico, operating a rotary encoder a few buttons and a 320x240 colour touch screen - then talking over the serial interface.
these things are very powerful, but cheap enough to dedicate one to managing a keyboard if needed (e.g. a pico is cheaper than a dedicated keypad controller IC..)
they do PWM very nicely for variable brightness of LEDs, and the low current output is managed easily by using transistors to control the actual LEDs anyway.
so far the only drawback has been the way they act as a slave in SPI mode meaning its hard to pretend to be something else.
but as a controller for point servos, signal servos, colour light drivers, serail interface hubs, screen drivers etc they are very hard to beat if you don't need wifi or bluetooth.
the Windows toolchain though is dire, I finally got a Pi400 where its a lot easier