RTX 2060 FE

Pros

• I'd consider it over the 1080 cause they aren't far apart in price. ... Seems like RTX and DLSS are the biggest changes in the last decade so getting an actually "modern" card sounds worth it.
• Examples that fall within your budget are; Nvidia RTX (2050, 2060, 3050 or 4050) or Older Generation Nvidia GTX (1650, 1660)
• 500 bucks is more than enough to get a Nvidia RTX 3050 laptop or even RTX 2060 laptop. They can basically handle the type of game you mentioned and even more like the Sims, Nintendo Switch games...well, even PS3-4 games without much has...
• I have a i5-9400f paired with an RTX 2060. Both still run like a dream
• I say to myself for the little extra performance on the 1080 I might as well favor the DLSS technology of the 2060

Cons

• A RTX 2060 would get you DLSS, but a used one is probably around $130.
• RTX 2060 go for around $130.
• For context, my current pc is running a Ryzen 7 3700x and an RTX 2060 6gb.
• GPU - first and foremost, that 6gb 2060 is complete trash, I had one for a month, terrible.
• In my opinion the technology/power of the 2060 is too limited because the 2000 series is already quite old + the 60 is not very efficient