With such a low end machine, I find this is impressive. It does mean that Silicon Macs can pretend to play some graphic intensive games. Especially all the M3 family.
I've been impressed with my M1 Air as well. Everyone is always comparing Apple Silicon to dGPUs (which is understandable), but we sometimes forget that a lot of premium 13" laptops (XPS, etc) are running Intel's integrated garbage, and the Air can play a lot of stuff that's flat out unplayable on much of its direct competition.