I think that for people who is trying to use their iPad Pro like a laptop, such as with Magic Keyboard..etc, an M1 Macbook could definitely make more sense.
But for people who use their device only for media consumption, tablet gaming or for artists who always use their pencil..etc, there is no doubt that the iPad Pro wins in this domain especially practicality wise. Then again there will always be some exceptions who will need to use Photoshop to make the drawings because may be they are used to that workflow or because they have some tools or plug-ins in photoshop that they can not leave without, or for those who need a bigger screen such as a Wacom Cintiq, but for the majority, iPad Pro is a better choice, from my point of view.
For students who use their device for notetaking, I think that both can be a viable solution but iPad / iPad Pro may be a better choice if they need to draw diagrams or take notes in mathetmic classes..etc as well writing mathematical equations on an iPad with Apple Pencil can still be more like the traditional paper and pen way.
So in my opinion, someone who is doubting if the M1 Macbooks is a better choice than an iPad Pro is someone who is using their iPads like laptops or else, such doubt, would never arise.