I get what the OP's feeling is here, that competition is good. And it is. Wherever there is no competition, either by lack of a competitor market or by government squashing the competitor market (public utilities, anybody?), less competition always discourages innovation. What's left is products or services that are unreliable, expensive, or just plain not relevant.
Examples can be found in a number of industries now: Taxi services have to compete with people who have a car and want to drive other people around for a fee. And just for an hour or two because we have to pick up the kids later from soccer and violin practice. Taxi services, particularly in the large cities, were noncompetitive, expensive, and full of fraud.
Another example is the US Postal Service. Now with UPS, FedEx, and other shippers, the USPS has had to get off their high horse and consider Sunday service. And Amazon, the biggest worldwide shipper now, has insourced that service. And mostly my stuff comes FAST. With USPS, I have to go to the mailbox. Or to my neighbors, since there's a super high rate of misdeliveries with the USPS. But with Amazon, my potholders, vacuum filters, and trinket deliveries always end up on MY porch (at least until my porch pirate decides to risk getting shot in my neighborhood and tries to steal them).
Even in the aerospace, space satellite, and defense industries, we have new players tipping over the applecart of the 100 year old companies.
This is all good.
But!
Just saying that the M1 needs a competing chip? Well on the surface that sounds great, but it's also missing a big component of the discussion here. Intel's "product" is the chip, yes. But Apple's product is not just "a chip". For Apple, it is the combination of the hardware package (of which the chip is only one part), combined with the software.
Apple is selling an EXPERIENCE, whereas everybody else is selling a widget.
Apple saw this with the original Motorola Mac, and wanted to IMPROVE THE PRODUCT (not just the chip) by improving the chip. Hence the move from IBM to Intel. But then AGAIN, the chip technology for the Mac was found to be lagging. This time, however; instead of moving to another chip supplier, Apple decided to source from a proven, reliable, and innovating chip provider: Apple itself.
So Apple, if you think about it, is only partially competing with Intel. It's more like Apple is competing with Microsoft, Windows, AND Intel as a group; while simultaneously playing hands on the side against AMD and Linux.
The "product" for Apple is the whole computing experience; not just one hardware part. Intel is only one cog in a much larger wheel.