Except that a 12" Macbook was NOT an entry level laptop. It was a premium laptop over the Air.
A smaller laptop is not automatically entry level. In the case of 12", Apple had to engineer some workarounds and used more expensive components to get to a smaller size.
What they can actually do to own the entire entry level market is to release a Macbook SE using the M1 Air chassis but with an M2/M4 and sell it for $750 MSRP permanently.
I think the 12" Macbook would be like the iPhone Mini. A vocal minority kept saying they want it. Apple built it and no one bought it. Granted, I bought one myself and love it. But clearly it's a small market and not worth the effort.
Honestly what Apple could do to own the entry segment is to ship a laptop that has an a17/a18 in it with virtual memory.
Continuing to ship m2 means holding onto an older manufacturing process instead of making smaller cheaper processors on newer tech with similar or good enough performance especially at low thread count (not heavy multitasking).
But otherwise yes. All the m chips are beyond entry level.