Spy Hunter was 32 kilobytes, released in 1984. And Intel just introduced the EPROM 27256 in 1983!
Bank-switching was applied to Atari because it only could access 4K of ROM, and 8K memories appeared around 1980 (also probably the cause that the IBM PC BIOS was 8K). An Intel manual for 1981 shows only memory capacities upto 8K.
Bank-switching couldn't save Colecovision at the time, because it was designed to support 32K of ROM directly without bank-switching. The problem was that memory was pretty expensive!
I mean a game like Mecha-8 requires 128K of ROM, that is FOUR 32K EPROM memories. At the prices of the eighties, it would have been prohibitive.
Coleco upped the RAM memory as it was going down in costs, but still tried to go with tape as it was the most inexpensive, but disk was entering fast to the market. It was a perfect storm, all looked like perfectly good decisions, but things changed too fast.