A lot of my friends went the Mac mini + Apple Studio Display route, which as we all know is an utterly foolish thing to do compared to getting an iMac.
'Utterly foolish' comes off as a bit condescending and insulting in tone, and the assertion itself has serious logical holes, as a number of posters have pointed out various ways the Mini+ASD option is superior for some.
-I've let them know that Apple has an amazing trade-in policy where they will put credit towards a new iMac when they turn in their Mac mini & Studio Display
I doubt that trade-in is going to return full original value, and someone accustomed to an ASD may find the 27" iMac screen disappointing by comparison. If the MacMini was a 'Pro' version, they lose Thunderbolt 5 (which not many take good advantage of yet, I imagine, but nice to know it's there). The loss of the ASD spatial audio may lead to purchasing external speakers for some, introducing considerably more clutter than eliminated by the iMac setup using fewer cables otherwise.
I give my friends a test drive of the iMac and show them how much better it is than the mac mini + studio display
You assert your subjective opinion as to which is better as objective fact, when many hold the opposite opinion.
-Utilize Apple's AR feature to show them how much more improved their setup looks with an iMac - less cables, clutter, and colors that make their interior pop
IIRC, you had another thread struggling with the decision of which color iMac to buy. You sound like someone who highly values the aesthetic look of the setup. You're not alone in that; some people make a big deal out of the minimalist industrial design of the Apple Studio Display, that it doesn't look 'plasticy' or flex and creak when they grasp and move it around, while some of us don't care so much when we mostly start at the screen.
Metaphorically, you may have the 'soul of an interior decorator,' but most people don't. Yes, the iMacs looks cute and their color options are a selling point. But if I cared so much about that,
Mighty Skins has a large selection of 'skins' for the M4 Mac Mini series that go way beyond a limited range of pastel colors (19 pages of options in my browser).
The M-series Apple iMacs have their niche. They are cute, powerful enough for many people, compact and minimalist with presumably high quality (albeit 24") displays and for aesthetically sensitive users without demanding computing needs looking for a decor-conscious option for a small space, they have a strong use case. They might also appeal to basic users, like if you're choosing a computer for a technically non-savvy relative where complexity is the enemy and simplicity is king.