Currently, 16GB is more than enough for medium quality settings at 4K in most (if not all) AAA games. Only a few of the latest AAA titles at high (or even ultra) settings utilize over 16GBs, even at 4K.
VRAM is only the limiting factor when the VRAM buffer is completely exhausted AND the GPU's rasterization performance is enough to make good use of the extra VRAM. Hardware Unboxed made a very informative video recently showing what happens to performance once a GPUs VRAM is exhausted - highly recommended watch. In the past, some GPU manufacturers have doubled the amount of VRAM on cards for no other reason than as a gimmick to sell more cards, with the comparatively low raster performance of the card negating any uplift from running out of usable VRAM.
IMO, a >16GB RX 9070 XT would be absolutely useless to a gamer if all the other specs (memory speed, bus width, etc.) remain the same. It may have some niche uses in AI/LLM/SD or more memory intensive production apps though.