Maybe not the memory amount, but if TSMC keeps moving the goal post as quickly as they are; we are going to be seeing a lot of revisions. I wouldn't be surprised to see a cost optimized Zen3, then a Zen3+, and then a Zen4 over the next few years. They really have no significant reason to hold themselves back from upgrading rapidly. People are going to start getting them 8K TVs, donchaknow.
The limited production capacity of leading-edge nodes could be considered a limitation. Since launch, AMD has struggled to secure enough 7nm production capacity from TSMC to adequately support their CPU and GPU production, in addition to the tens of millions of large combined processors going into Microsoft and Sony's consoles. So I could certainly see them hold off on moving production to a smaller node alongside AMD's next generation of PC hardware.
And sure, the console chips are already on 7nm while using Zen 2, and they could likely move them to Zen 3, but it probably wouldn't be all that beneficial. Developers will still be designing their games for the launch consoles, and any performance benefits of swapping CPU architectures would be relatively minor, at least not enough to be marketable without a sizable improvement to the graphics side of things to go with it. And I can't see that happening without moving production to a smaller process node. The CPUs they have are already far faster than what's in prior generation consoles, and are likely still underutilized considering most games are still being designed to run on those older systems. It's also unclear whether the newer architectures would be all that beneficial to performance of the consoles, since they are already using fast GDDR6 as their system RAM, potentially minimizing the improvements to things like cache.
And of course, offering too many variants of the consoles might get confusing to end-users. I would expect the console manufacturers to do something similar to the last generation, launching a "Pro" or "X" variant several years after the launch models, alongside a "Slim" version with comparable specs to the originals. Microsoft might even be able to trade the One S for Nintendo Switch-style portable design at that point.