I am, in a way. There is absolutely zero need to buy a new Mac. I was thinking of buying an M1 system but was holding off for an update to the Mini. While not technically an update to the Mini this is essentially what I was waiting for. I plan to buy one but I am trying to decide which one to buy: Max or Ultimate. I don't need a Max and certainly not an Ultimate. But I can easily afford the Ultimate but, like you, the practical side of me says to buy neither.
That said sometimes treating yourself, within means, is not a bad thing. If it helps you're replacing an almost 7 year old system with a new one that should easily last you another 7 years. Rationalize it, justify it however you want if that's what it takes to treat yourself.