I wouldn't say that with this generality.Perhaps M1 iMac 24-inch? This is the closest you can get today. The combination Mac Studio + Studio Display is way too expensive and powerful for most users. Definitely not an iMac 27-inch replacement.
The needs of people who bought base models of the 27" iMac or upgrade few features are covered by the 24-inch model. The needs of people who got the top of the line are covered by the Mac Studio. There is at most a segment somewhere in the middle that could be a little awkward, maybe people who need 32 GB of RAM but not much performance.