Looking at this comment again, it seems that intensity_target
denotes the maximum theoretical luminance of the curve (i.e. 10000 nits for PQ, even if the image is limited to 1000 nits), so that multiplying it by Y gives the displayed luminance.
If the output color profile specifies the screen luminance (e.g. 80 nits for sRGB), it would make sense to use this value. But better double check that with Jon or someone who knows the JXL standard well, to make sure that decoding SDR images does not rely on the special value of 255.