I'm currently using a second hand GTX1050ti (Yeah, I know lmao), and the next big games I really want to play are Baldur's gate 3 and Starfield.
My other specs are quite beefy, since this is also my work computer:
Ryzen 9 5900X
64GB RAM ddr4
My monitor has a 1080p resolution, with a 60Hz refresh rate and I'm pretty happy gaming with that. Would an rx6700xt suffice? Is it overkill or just barely enough?
AFAIK the 6700 XT is more than suitable for 1080p@60Hz. AMD themselves market it as a 1440p card. I think the 6600XT could suffice for your needs, it runs Cyberpunk 2077 at 65-70fps on ultra settings at 1080p to give you an idea. For future-proofability you could consider the 6700 XT though, since it has 12GB of VRAM (as opposed to the 8GB of the 6600XT) :)
The 6700XT is probably the best value GPU right now. If your target is 1080p60, you're easily going to go over that with graphics maxed out on just about anything out now.
I just bought a 6700XT last month and got my newly built PC working a few days ago (faulty ram on arrival delayed it)
For reference, I use a 7700X CPU with it as well
It's been absolutely phenomenal so far, though the only big game I've played since is Days Gone, at 1440P, max graphics
You could definitely use it for 1080P, not sure about ray tracing and how much that'd kill frames, but either way, the 6700XT will have you set for a while, I feel.
It's basically an overkill for 1080p. 6700xt is great if you are going for 1440p 144hz soon, but if you plan on staying on 1080p, you'll get very much same result with a 6600xt or plain 6700.
6700xt will be not be fully used on your monitor, so you got get a cheaper gpu and will not notice any difference. If you want AMD, then 6600xt or 5700xt will suffice, Nvidia side 3060 12gb will do fine.
I would think it might be a little bit overkill for 1080p 60hz, but I wouldn't think that it'd be bottlenecked by your CPU or ram, and that 12 GB of vram is gonna be nice in the future and at ultra in the latest games I think. Personally I would try to get a 120hz freesync monitor because it is quite a big difference, and a 6700 or 6700xt should be able to run around 90 fps on 1080p high. Check some Gamer's Nexus benchmarks and see how those cards perform in recent games.