The iPad Pro on the other hand, who would actually want one of those who also would find the other lesser iPad unacceptable for what they need? Not too many people I would wager. Of these "not too many people" how many would be better suited with a Mac? A lot of them.
Those who want to work full-time from the iPad will be willing to pay the premium price for the absolute best iPad, but I admit that likely isn't a massive market. For me, I'm a tech enthusiast so I like the fancy features, but even I have to admit that I was
really tempted by the new iPad Air, which I think is fine for 80% of the iPad user base. Also, the extra money is worth it for the slightly larger screen and Promotion to satisfy my techies. I agree with
@rui no onna though, I kind of wish there would be an A14 version of the iPad Pro with the RAM of the A14X. The X variants used to be needed for the display, but we've longed transitioned away from the necessity and now it just represents higher performance at the cost of battery and heat that is unneeded for the vast majority of iOS tasks.
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TL/DR: Managing multiple Macs is more difficult than multiple iOS devices plus the iPad in a laptop context is less of a compromise than a Mac in a tablet compromise, so I will continue to use an iPad as my in-between device and primary personal computer and will therefore pay for the best one I can.
To answer the post topic only from my perspective. I've never been thrilled with the iPad-as-a-laptop experience because I find iOS limiting for some niche cases and I also find laptop-style iPad hardware (even the magic keyboard) to be a bit clunky. For most cases, outside of OS preference, a MacBook Air will be a more solid and reliable setup than an iPad hooked up to multiple oddly-weighted accessories - however the iPad is also far more versatile.
I love using macOS on a big display, so a desktop is still in my future so I can have an always-on Mac with massive storage and power. I will also always have an iPhone. For the middle ground, I still prefer an iPad to a Mac which means I will pay for the Pro to have the best experience on my main personal computer. While iPad vs M1 MacBook each have their pros and cons, I'd still pick iPad as my portable system due to the fact that the tablet form factor is still preferable in certain circumstances (e.g. streaming, casually browsing, reading and marking up PDFs).
An iPad can act as a "good enough" compromised laptop when I need it too and be an excellent tablet. A MacBook will be an excellent laptop, but can't act as a tablet and would be more of a compromise in a tablet context than an iPad would in a laptop context. Also, it's far easier to manager multiple iOS-based devices than it would be to manage an iMac and a MacBook (e.g. several software installations would have to be repurchased with multiple licenses, etc.)
Until Apple creates some kind of table that can excel at both contexts, I will continue to choose the iPad because a Mac desktop + iPad + iPhone still gives me the best flexibility while offering me a way to get my needed tasks done.