In terms of iPadOS, I think it will be reasonable. Will that take full advantage of all the power the M1 has to offer? No chance.
At first I thought it might be a sign of something big, but once all the hype died down and talk of macs with M1X started surfacing, it’s pretty clear that anything ‘big’ won’t be this year for ‘iPad’, it would steal too much of the show away from the new macs.
Now sure, if what you want is a slightly more advanced iPadOS, then it won’t be overshadowing anything mac related and it’ll come to some degree, but it won’t push the M1.
I hope I’m wrong, but I’m starting to give up on the iPad, it’s never going to reach its potential while Apple continues to strangle it. Might as well just stick with the base / air models unless you’re lucky enough to fit into Apples tunnel vision of who the device is for. Clearly anything develop-y is a long way off.
Apple sells a lot more iPads than Macs (though I don't know how the iPad Pro vs Mac numbers compare). I'm really curious to see what new features iPadOS gets, though I suspect it won't be what everyone is hoping for.