I got a BTO Late 2012 iMac with a 1TB Fusion Drive on launch day, and have a lot of experience with them. On the same Mac, I am currently booting from a TB3 NVMe drive, and the difference between them is pretty big for both speed tests, and real world use.
I mean I have a SSD in my MBP so I know they are faster but to me the speed difference (alone) is not phenomenal.
A couple things with this.
First, if you are going by the "feel" of the computer, you have to tell us what OS you are working with on both Macs. I suspect that the one using the Fusion Drive is not Catalina.
Second, you
cannot go by just a BM disk speed test comparing the Fusion Drive to a SSD.
The reason is that Fusion Drives, by design, reserve 8GB of data in the SSD portion as a "working partition", not really a partition, but a portion of the SSD that is used for writing new data.
When the BMDST goes to write the data for the speed test on a Fusion Drive, it is showing the write speed of the SSD, not the "Fusion Drive". It is also showing you the read speed of the SSD portion of the Fusion Drive, because that is where the data was left.
If the BMDST had a higher sized stress test (like 8GB+), you could would see a sharp decline of write speeds once that free "working partition" was filled and the HDD started to be utilize.
The other portion of the SSD in the Fusion Drive is used for long term storage of data that is used often, such as OS data, and app data that you use the most. Everything else is stored on the much slower HDD.
This is a real world example of the benefits and downfalls of using a Fusion Drive:
I used to Play WoW a lot.
When I was playing everyday, the load screens on WoW would be really quick. (The game was stored on the 128GB SSD portion of my iMac's Fusion Drive)
I would sometimes take a few days or weeks off from WoW, doing other things on my iMac, When I would start playing WoW again, the load screens became painfully slow. (The game data was moved from the SSD onto the HDD, and now loading from the slow HDD)
If I would just play for a short period of time and stop for a few days, the load screen times would remain slow, or at least slower than if I played often.
If I started playing a lot again, the load screens would get back to being fast again. (The game's data, along with all the other data on the iMac, moves back and forth between the SSD and HDD depending on how often that data is being used.
Are these differences between fusion and SSD exaggerated?
Generally no, but this depends totally on what you do with your computer and what OS you are on.
If you are using your Mac for Facebook and email, then you will not utilize the speed benefits of the SSD as much as people that use their Macs a lot more than just the basic of the basic of tasks.
Also, if you plan on using APFS or Catalina, there is a sharp decline in performance using HDDs and Fusion Drives, so the SSD benefits would show even more if this is the case.
At this point, I would recommend getting a SSD. If you cannot afford to get Apple's expensive SSDs, then get a cheaper option and use a SSD externally.
If you plan on using the Mac with an older OS, and get a Mac with a Fusion Drive with a 128GB SSD or larger, then you would probably be fine sticking with the Fusion Drive if doing basic tasks on the Mac.