Thanks for your insightful comments. This logic has been in place for over a year and hasn't fallen apart or required much maintenance, so I presume it is a viable alternative.
I think "scaling" in this case is more of a refactoring problem than a technical limitation. One question that still remains open for me, is whether the initial data for a specific state (e.g. loading a list of item to display in the screen or a form element) should come from a machine or if the screen should load its own data, as the machine doesn't really need to know or store large volumes of such data. I guess if I were to revisit this problem, I would look into atomic states (recoil or jotai) to see if they would address some of the scalability issues in a cleaner way