This article pretty much confirms the view that this is a replacement for the old 21.5" iMac and not a suitable replacement for the 27" iMac user. Apple never claimed as such, but it was hoped we could get the connectivity, RAM and SSD of the old 27" iMac in this smaller screened version. Apple really do want we 27" iMac users to move to the Studio and associated display at a substantial increase in cost (the equivalent Mac Studio/Studio Display combination that is equivalent to my Intel i9, 27" iMac with 4TB SSD and 128K GB is around $1500 more in price, albeit with the excellent Apple Silicon performance but nothing else being improved).
Yes I could reduce my workflow times with the new processor, but my 2020 iMac is worth next to nothing and I cannot afford to amortize the cost of this machine over 3 years and then pay $1500 more for an equivalent today. It is all a matter of money and time in the end and for me the equation does not work. I do have however a very fast Windows machine and 32" Display which cost about 50% the cost the Mac Studio/Studio Display and appears to be on a similar performance level (lower power consumption is irrelevant in a desktop) and is infinitely more upgradeable. I suspect I know what I will be doing and it will not include Apple products unfortunately. It has been a fun time and will still keep my Apple laptops, but my main machine will probably move to Windows.