It would compete more with the 14", for sure. I guess the current 13"/14"/16" MBP lineup basically is replicating the old 13"/15"/17" MBP Intel lineup of years past. But I don't think we were limited by the CPU as much on the Intel models. But we were definitely limited in GPU options, as some of the better GPUs were only available in the 15/17" models.That would be nice, but that would be a different model altogether. SOC changes everything.
So yeah maybe the M2 is more akin to "having a lower GPU option," since the GPU is one of the bigger upgrades with the Pro/Max models.