None of which explains away why one of each devices display outputs is hardwired to HDMI, nor disproves a theory that the same limitation would continue with a new Mac with built in hdmi.
Well, I guess neither of us has full M1 technical documentation to hand, but it's not hard to make an educated guess:
That hardwired HDMI port in the M1 Mini is most likely driven by the display stream that would
otherwise have been hardwired to the internal display in an Air/2-port MBP (the primary purpose for which the M1 was designed). If the Mini hadn't used it for HDMI, it would have gone to waste: it can't be fed back to the TB controller, because they're now on the SoC.
The M1 is cut to the bone to work in ultra-portable, silent laptops, and adding switching to flexibly route the 2 display streams between (internal) TB controllers and the internal display was probably deemed a waste of silicon for the niche case of wanting a second TB display
instead of the laptop's internal display.
So if Apple
did add HDMI to a future
MacBook - which
needs a stream for the internal display - they couldn't implement it the way they do on the M1 Mini.
The new soc could support 8 displays, if one them is forced to use hdmi that’s worse than if it could be used from USB-c.
So you feel that any resources used on non-USB-C ports are inherently wasted, even in a hypothetical scenario where there's no real scarcity of resources? That's not reasoning - that's just you re-stating your opinion that you only want USB-C ports and ignoring all the practical arguments that people have put forward for dedicated ports.
You're ignoring the fact that each additional TB3/4 controller needs 4 PCIe lanes, 2 DisplayPort streams and extra power circuitry - whereas the equivalent of 1 PCIe lane and 1 DP stream would provide all the dedicated ports people are asking for.
The point you're refusing to see is that using USB-C to connect a DisplayPort or HDMI display is
not better in every respect than using a dedicated port. It needlessly makes
unrelated resources like display, power and peripheral I/O compete for a single, expensive-to-implement socket - necessitating external hubs/docks. For most purposes it is only offering the same, single USB 3.1, HDMI and DisplayPort connections as dedicated ports, while replacing simple, cheap, passive DP/HDMI cables with more expensive adapters containing active components with more points of failures.