A Studio Max with 1TB storage, 32GB RAM a 10-core processor, 32 core GPU, plus a Studio Display comes to $4k - the Studio Ultra is probably more comparable with a $7-8k 18 core iMac Pro configuration - and buying a Studio Display isn't compulsory - cheaper alternatives are available. I'd say that was an improvement price-wise, provided your software plays well with Apple Silicon.I lusted after the iMac Pro for years but couldn’t drop $5k on it.
...and I think that will apply to a lot of customers. If there's been a headless alternative to the iMac Pro in 2017 (say, if Apple had managed to bring the trashcan up to credible 2017 spec & you'd paired it with an LG Ultrafine 5k) then, today, you'd just be looking at swapping out your Trashcan for a Studio and keeping your display... and if a shiny new MiniLED display comes out next year, you can just replace the display.Now, I prefer the modularity of Mac Studio.
I'm using a pair of relatively cheap 3:2 4k+ displays on my Studio. Is the display quality as tip-top as a Studio Display? No - but it's still pretty good and a pair of matched 3:2 displays if far closer to what I want/need than a single, super-duper, one-size-fits-all 5k panel. For lots of applications that aren't video production - like coding or music - screen estate via >27" screens or multiple screens is king. Even for serious photography/print production, super-bright P3/HDR isn't necessarily the best.
I think the iMac Pro and high-end i9 iMac stopped making sense as soon as Apple themselves started offering a choice of their own displays again: apart from the newer Studio Display (with maybe another in the pipeline), there's the Pro XDR which some Pro customers will presumably want rather than a 5k iMac.
Meanwhile, with no great performance difference between the M1 Max in a MacBook Pro and the M1 Max in a desktop, a lot of people who previously had a laptop for portability and an iMac for power are going to be satisfied with just a laptop - with the option of a Studio Display (which, if you look at it, is designed as much as a MacBook docking station as a Mac Studio accessory).