Hopefully it is the mythical xMac alongside a continuing full-size Mac Pro, possibly called Mac.
Doubtful this will be an xMac in terms of pricing. the xMac crow primarily wanted something in full fratricide zone with the iMac. That probably won't happen. The first Mac (with no suffixes or adjectives) was an all in one. If anything is getting a revival of just plain 'Mac' (or 'Macintosh' ) it will be an all-in-one model. [ there are folks who jumped into the Mac market in the 90's when Apple had a proliferation of "boxes with slots". Apple Silicon (ASi) is primarily so Apple does not have to build a box with slot. Laptops , iMac , and Mini are going to be sweet spot for ASi. The ASi SoC's will allow Apple over time to push further in the enclosure directions they have wanted to take the Mac but were limited to. Thinner laptops, Smaller volume iMacs, Minis with performance but the same size. etc ]
There is higher tension if they do a half-height, limited slot model Mac Pro with the space the iMac Pro is sitting in now. Apple just move the performance down to the "plain" iMac . This system with no-so-inexpensive MPX GPU models could/would sit above that iMac price zone , but below the 'full' Mac Pro zone. [ the iMac Pro may turn into effectively being the "large screen" iMac with the "extra deluxe" ( XDR-ish ) screen attached. More so gapped on graphics and screen than on application core counts.
Pretty good chance this first "half size" Mac is driven more so by the limited I/O capacity coming out of this first iteration ASi SoC ( probably aim more at the iMac range ) than with any deliberate objective based on lust to deliver an $1-2K priced xMac . If anything something back in the MP 2013 price range of $2,999 - $5,999 zone.
It will help Apple "spike the ball and do their early transition touchdown dance". See transitioned all of the Macs products lines (just with the 'full' Mac Pro still coasting before an even later SoC transition. )
I would love a Mac with more flexibility, but cannot justify the expense of a Mac Pro as it is beyond my performance needs (I could use the power, but it would make little difference apart from app builds taking a little less time), so a smaller and cheaper model would be excellent.
I think Apple knows they left as decent chunk of Mac Pro buyers behind when they increased the entry price of the system by pragmatically 100%. If they do a "half tall" system it would probably only to get those "Mac Pro" users that go left behind. It really won't be primarily targeted at the xMac folks the existed all along when there were Mac Pro 2009-2013 models.
Once has Apple full Mac Pro ASi SoC then these two will share SSD, RAM , MPX module all of which would probably set a higher baseline price. There would be some pricing shaving on the "half' tall model with lower power supply and less logic board signal routing and complexity. And "greener" to ship and stock.