It is hard to compare a CPU that has existed for one year and two months to one that will only be released half 2022. This is the problem in a lot of discussions about the M1: people will say 'wait until AMD or Intel releases XYZ'. I can pick up an M1 machine at pretty much any electronics store. By the time XYZ is generally available, the M2 will already be in mass production (in this case 5nm AMD CPUs).

At any rate, this is all besides the point. Even when Apple was still on 7nm, their iPhone/iPad CPUs were already competitive with Intel parts at much better performance per watt (an also left Qualcomm et al. far behind). It has been clear for a few years already that your point that

to make a CPU that's just barely competitive with the rest of the market

is nonsense.