I did not realize you were looking for input on the schematic/pcb. I have done several boards based on the RP2350B and RP2040. I don't see anything obviously bad.
If you are referring to the +5V switching MOSFET, unneeded if you are only powering from USB.
I did not use the onchip 1.1V regulator but rather a TI LDO. Main reason - There was a lot of chatter that putting a buck converter on IC was a bad idea. A polarized inductor is needed and only abracom was qualified at the time (9 month ago) - the TI LDO was cheaper than the abracom part.
Crystal selection is straightforward. Either use the specified part or select one with similar specs at about 1/4 the cost.
You may not need a separate plane for the 1.1V. I did my designs on a 2 layer board. You might get by with a 4L board with 1.1, 3.3 and 5 on the same plane. 1.1 will only be near the mpu and 5V could be pushed around outer edge of the board. You could keep a solid 3.3V or gnd plane under the signal ltraces. The screenshot below shows the 1.1V (Dvdd) ring around the ground slug with the 3.3V (IOvdd) ring outside that. The Pico and Pico 2 are both 2L boards, btw.
You might want to consider an adjustable Dvdd LDO if you want to overclock the RP2354. I have seen a lot of reports of success at much higher clock rates.
I think you have a typo, TXU0401 rather than TXU0104. And, BTW, converting from 5V to 3.3V, the max data rate is 125 MHz, not 200.
1206 IS pretty big. I use 0402 but have my boards assembled on a PnP production line. For manual placement, 805 are very easy. The RP2354, A or B, is going to be a bigger challenge to manually place. I often do the first turn of a board with 805s for hand rework and then reduce to 603 or 402 for full production.