Not entirely. There wasn’t much changed to the chips except the speed. You’re not wrong, I wouldn’t call it a complete transition like the G3 to G4… however, the transition from G3 to the G4 wasn’t a HUGE difference compared to 68k to G3 or G4 to G5 (that was seismic).
The G4 was essentially Motorola using the existing G3 from IBM, but adding the Velocity Engine (then years later, crippling it with a terribly slow frontside bus 🤢). I’d say from vanilla M1 to M2, it is a G3 to G4 equivalent, but coming from the M1 Pro, Max or Ultra… it’s a modest update.
If you’re switching from Intel, this is the update for you or wait until the M3.