I disagree. Apple has long made best effort to deliver fastest possible CPU in a ultraimpact form factor. Their new entry level CPU core competes toe to toe with much more expensive fastest available desktop designs. As I’ve said before, I see no world where Apple will be satisfied in holding the second place.
Regarding GPUs, yes, Apple will be ok with delivering mid-range to lower-high-end performance, but they will do so in a form factor and with power consumption others can only dream about.
I think you are mutating "fastest" into a monomaniacal focus on solely single threaded. If in its laptops class M1X is 80% faster iGPU . 30% faster , and 5% slower on single threaded then that isn't a diaster from a balanced, overall system metrics perspective. That is winning two out of three by a large margin and incrementally under on just one of the three.
Apple's single thread progress has mostly fallen out of their perf/watt push as a side effect. I think you have the 'cart in front of the horse'. Apple is highly unlikely to toss aside and de-priority perf/watt just to only get to better single thread scores.
If the M1X has more cores it should also have a large unified L3 cache. If put the whole system in to a benchmarking mode where largely push the increased Performance cores into a sleep state so that a single P core can leverage a 20-100% larger L3 cache just for its own data stream then there isn't a huge drive to push clock speed far higher ( or change the microarchecture). Pretty sure I saw one M1 versus A14 floorplan analysis that said the M1's L3 was smaller than the A14. ( partially offset on the M1 by going to twice as many memory controllers. ) If true, there is an extremely good chance that are not seeing absolute maximum single thread performance out of the core design that is already present in the M1. ( there are probably a decent, but not overly large, number of cache miss pipeline stalls that put bubbles into the instruction stream completion). Higher effective IPC can offset brute force clock count cranking.
There is a pretty good chance the M1 is die size constrained more than the A14 is. (otherwise wouldn't have had to take hit on L3 size (or relative size)). (it had to fit into the iPad Pro). A bigger M1-generation die probably won't be on tight of a leash. If minimally shooting for a MBP 14" , Mac Mini, and MBP 16" those are much bigger board space targets.
"Tortise and the hare" . Slow and steady cores that get work done on every single cycle can get higher throughput on non micro-short timeline benchmarks than cores that out race the coupled memory hierarchy on a regular basis ( 1,000 cycles of work , 400 cycles of effective no-ops waiting for memory system to 'catch up'. 1,000 cycles of work , rinse and repeat). It is like sending a top fuel dragster down an Indy car / NASCAR oval track. burns rubber down the straights and performs badly in the turns.
Apple is extremely likely not switching gears to focus on top fuel dragsters in the M-series pro line up. Attaching a better ( more cache hits and higher bandwidth) power efficient memory subsystem to the cores they have is a far more likely move. That actually will help in the multi-core contexts also ( which includes iGPU ad well as concurrent active P cores. ). That multiple dimensional beneficial impact is the more likely path Apple's design are going to follow. It is more efficient overall and efficiency is one of the primary design objectives.
if bumping the L3 size gets them 3-6% increase in cache hits than a 2-5% increase in clock speed would effectively take advantage of that. Apple takes a modest power increase of running the larger L3 cache but needed it anyway for the multiple core stuff ( which also is going to ake more space and power. )
On the next half or full node fab process improvement Apple can take a clock speed bump. If those come on a regular basis then they can take them as they come along without any fundamentally radical change to commitment to perf/watt as being the number of design objective.
Apple having to through perf/watt out the window because Intel and/or AMD threw it out the window???? Probably not going to happen. Especially for laptop SoCs ( which is likely all that Apple is primarily interested in because that is all they primarily sell in the Mac product space. )
P.S. the other part of "Apple sells fastest Intel laptop CPUs" that is being missed here is that just because they are "fast". Another very substantive role here is that they are also the most expensive. Apple slaps another 15-20% tax on top of Intel's pricing. So
$300 Intel laptop CPU is a $345-360 ( $45-60 for Apple) contributor to system cost.
$500 Intel laptop CPU is a 575-600 ( 75-100 for Apple ).
Apple doesn't pick lowest cost Intel CPUs not because they are slower , but far more so because they don't want to sell laptops below a certain self selected price threshold.
That whole "fastest Intel single thread speeds" is in part a spoon full of marketing sugar to help the Apple tax go down.
For the M1 Apple has largely left the system prices the same while the Intel mark-up disappeared. They have also dropped the higher profit BTO choices. That wasn't to take in less money overall. They are just cranking the higher margin take to the whole product line instead of skewing it to the top end BTO systems.
Intel offered overclocking CPUs on the desktop product mix and Apple regularly skipped those for fixed clocked version and never officially supported overclocking where they did happen to use those SKUs ( because no other good option to push prices higher).
The notion that the MPB 16" system design started with the mobile i9 and then Apple wrapped the whole overall system design around belies the obvious mismatches between the chassis design , power supply , and other major system components. It is the most expensive option. It isn't the best fit option.
[ And frankly if Apple was OCD on max clock and max thermal loads during engineering acdeptance tests they would have caught the fact that the clock limiter setting were wrong before they shipped 10's of thousands of units out the door. ]
For the M1-much-bigger-die also is also probably going to push out higher payouts to all MBP 16" users, not just the upper BTO tiers. Get the extra BTO money without offering as many configuration options.