It wouldn't, it's a different market, Air has M1, the mini would get A16 and 6GB RAM at best and wouldn't get Stage Manager (it has no official keyboard).120hz OLED would be incredible in this form factor. But then it would probably cannibalize Air sales.
And the air could get 120hz and OLED in 2024. So no issue.
I am not sure about OLED, but I do believe the mini will get promotion next year, especially after the jelly saga.