I agree with changing the names away from Gen1, Gen2, etc. With the new names, the community now has some new shorthand: X16D and X16G, plus whatever we decide to nickname them, like "big board", "small board", "mini", etc.
As for the FM chip, I honestly think the PSG in the VERA is capable enough to stand on its own (go listen to some homebrew VRC6 music from the NES to see what I mean), and for my first few projects, I was planning on doing exactly that. Like, I was going to treat the FM chip more like it were an optional expansion board, because I was almost certain that's what it was going to eventually become once the stock declined enough.