To be honest, I mostly run my M1 MBP Max without the notch, giving up a little bit of screen real estate in exchange for a working menu bar. If I'm working in an app where the extra vertical real estate is important I'll quickly switch resolution with JibApps Display (much my favourite of the third party display tools, as it's simple, elegant and has a great night mode with both software dimming and blue light dimming).
Bringing the awful Dynamic Island to macOS where there are so many good ways to switch between apps (command-tab, exposé, recent apps, LaunchBar/Spotlight) would be creating a solution looking for a problem (i.e. there isn't one).