This degree of power in a tiny, fanless computer is an absolute stepchange to what was possible using x86 chips. The Intel 12” MacBook, the only other fanless Mac, was weak on CPU performance and especially weak on GPU performance. The AS MacBook Air trades blows with a 16” MacBook Pro with discrete graphics (albeit quite entry-level discrete graphics).
Does that matter for the wider industry? At the moment, I don’t think the pieces are there on the Windows side. But this might be a catalyst to start getting them in place. It’s worth noting neither Intel or AMD have any answer to the M1 for fanless ultrabook class devices (nor does Qualcomm for the moment). So Apple has the opportunity to expand and take the cream off this lucrative market segment, which might be a worry for other OEMs where the overall PC market is stagnant. Unless Intel or AMD can pull off a quick comeback, we might see redoubled interest from Microsoft and their OEMs for using Arm in this market segment, eventually forcing x86 out if it is successful. I suppose it hinges on whether Intel/AMD or Qualcomm/Microsoft/any consortium of OEMs are first to, or more successful at mounting a challenge here.