On a Tflop level, I believe the M1 is about the same as an M1050ti. 2.5-ish TFlops.
It will be interesting to see if the rumours of the 32-core M1X are true, because based on that, the next 16" MBP would have theoretical performance levels approaching my Desktop 1080ti, at just 1/6th of the power draw. Crazy stuff. Enough for 1440p Ultra, or 4K medium gaming.
The issue I see is that unless Apple spends effort in getting headline games running native (which it seems the new GPUs have the capability to do) then all people are going to see is the benchmarks, which show Apple losing badly, yet again, to standard US$1K-2K laptops. People won't realise that the games on mac are running via virtualisation of an emulator, or other such thing. And really, it doesn't matter that they are; bad performance is bad performance, even if it is highly technically impressive that the performance in such a situation isn't abysmal. I believe poor graphics performance is a drawback for many potential customers, even if they aren't buying it specifically for gaming. I have a mac and a Windows gaming desktop (best of both worlds), but many other people can't afford or otherwise justify both.
I would suggest that if Apple is interested in going into the gaming market for Macs on any level (they certainly are front and centre in the Mobile gaming market, so I don't think it's a huge leap) then I would suggest that we might see some new, graphically intensive games being showcased in the MBP update event.
I feel it would be a great idea for Apple to consider funding for some leading games to be ported to run native on Apple Silicon. Showcasing having something like Cyberpunk 2077 or Doom Eternal running even on moderate-low settings, at native resolution 60Hz on the top-spec 16" MBP, would certainly rock the "Macs aren't good for gaming" narrative.
If Apple can find a way to show that Macs can be good for gaming, that might help sell more units; not to 'hardcore' gamers of course, but to people who want an everything computer. If that happens, then maybe the balance tips, games studios start seeing profits in making games that can be compiled for native Apple Silicon, and then Mac Gaming finally gets a life of its own.