It's absolutely possible to do high end Intel in a compact laptop with relatively good thermals - look at thin Windows gaming laptops for plenty of examples of this (and these have way beefier GPUs than macbooks too).
The power draw drains batteries, and the heat is... very annoying at best. I have used a couple ThinkPads and a Dell XPS over the past 5 years too, and all of them had the same issues where they'd constantly be pushing out very hot air, and the battery life was never more than 4-6 hours.
I went to ifixit and clicked the very first laptop teardown I saw, it has one. https://guide-images.cdn.ifixit.com/igi/gnBU5dVYrIhInIXV.med...
Or, let's see, razer blade stealth, that's a 3 pound laptop. https://guide-images.cdn.ifixit.com/igi/nHPaankElOWQndsv.ful...
What's a light 15 inch laptop, XPS 15 7590? https://i0.wp.com/laptopmedia.com/wp-content/uploads/2020/01...
Acer swift 5 SF515, "lightest 15 inch laptop on the market" https://i1.wp.com/laptopmedia.com/wp-content/uploads/2019/01...
LG Gram https://guide-images.cdn.ifixit.com/igi/fFlFJB3PKThJs3TA.hug...
They've gotten around it with M1 by building an entirely new chip that's power efficient enough that it practically doesn't need good thermal design to perform near it's peak. It's an impressive technical accomplishment, but it's also hilarious that Apple had to go this far to cool a chip properly.
Possibility 2: Apple had a master plan to intentionally torpedo performance in order to make their future first-party chips appear more competitive