Yes, I think so. Just as the MacBook Air has increased to $1,199, the iPad is now effectively $449. Apple is still selling the legacy $999 and $329 models during this acclimation period.
If Apple intended for two entry-level iPads, they would have added a new name, like iPad XR or something to separate the $449 and $329 models. By using the same name, it suggests this is a transient situation.
There are people who content create for fun or part-time vs. those who do it as their full-time job. People who use iMovie vs. DaVinci Resolve. That is the difference between M1 Air and M2 Pro.