Unless we talk with an Apple employee, we're all guessing why Stage Manager doesn't work as well on non-M1 iPads. It could very well be a combination of a number of factors: RAM, speed of flash storage, neural engine, something in the M1 that isn't present in older SoC's, etc. Lacking any or all of the above could make Stage Manager not work very well or perform too slowly. It takes a lot of memory to run up to 8 apps simultaneously, so I would guess it has to do with low RAM and slow flash storage would make that many apps run very slowly, but that's only a guess.Likewise, I’d imagine that Stage Manager on the iPad takes advantage of swap memory. I wouldn’t at all be surprised if Stage Manager Needs an M1 for that reason alone.
Reason? I’d imagine that swap storage depends on the storage controller to some extent (and maybe even the memory manager). Spinning hard disks generally have a virtually infinite number of read-write cycles, but their mechanical bits fail over time. Solid state storage, on the other hand, has no mechanical bits to fail, but they have issues with wear leveling. I wouldn’t be at all surprised if hardware needs controller support for using solid state primary storage as virtual memory (and the memory manager might need to support it, too), and it wouldn’t be at all weird for processors originally designed for phones not to have the necessary support. But the M1, being a chip designed for a desktop PC, likely has the memory manager and storage controller hardware necessary to support virtual memory without causing undue wear and tear on the primary storage. We tend to take virtual memory for granted on desktops (but I saw a video the other day where someone put an SSD in an old MacOS Classic Mac, and I got to wondering how Mac OS’s virtual memory would work on that and if it would cause issues with SSD longevity*), but there’s a lot of enabling technology that supports it.
* SSD on Mac OS Classic is already slightly dodgy, since Mac OS Classic doesn’t support TRIM for solid state storage. That means that file operations are probably poorly suited for wear leveling, for one thing.
It may not have anything to do with the M1 at all, but perhaps the fact that M1 iPads come with 8GB minimum of RAM. Virtual memory helps to run more apps at the same time, but more real RAM helps them run a lot faster.