If you factor the 2020 27" iMac costing $1799, you'll have an heck of an experience paying the same amount for the Studio Display and then staring at it with a blank look on your face because there is no computer attached.
OTOH the 2019 27" iMac I *did* buy for about that price (just bumped to an SSD instead of HDD/Fusion which was still the standard configuration then), is now sitting practically obsolete. It has been given some server functions but that lovely 5K screen is entirely wasted, chained to a machine sat in the corner that really might as well be headless, and therefore almost permanently dark.
I couldn't be happier with the current lineup. The Mac Studio and Studio Display are exactly the products I wished Apple would make for years, "Like a high-end iMac without the screen, and that great screen separately please." Because displays and computers have very different product life cycles, more so the more upmarket you go.
(I only don't have a Mac Studio because it came out six months after I bought a MacBook Pro, which I was unhappily using on 4K displays and, for a while, Luna Display to the iMac... The *next* machine will probably be a Mac Studio, assuming those rumours of its cancellation prove to be as wrong as they are daft, which I'll plug into the Studio Display I bought a couple of years earlier.)
I also couldn't be happier with the M1 24" iMac I bought in January. At the time even knowing there might be an M2 version coming along imminently; for the reasons I was buying it, it didn't matter. Because of the context that iMac is intended for: Low-intensity computing that can be given a *place* in a living room or a kitchen or a bedroom without it turning into an office-like environment. And I think that always *was* the true, best home of the iMac, back to when they came in bright colours the first time around. Having monster-spec iMacs was always wrong-headed. Because of the reasons stated above. Display and monitor will obsolete at different rates, even without the problem of a fault in one rendering the other useless too. But at the low end, not anything like as much. For the tasks to which I'll put it, and for the tasks to which I think most people would put the 24" iMac, the M1 will be just fine for years and years. Maybe even the lifetime of that screen. 😉
(Even so I know I'm underutilising the iMac 24" to the point of practically insulting it: One-up from the base model, it of course could stomp all over that 2019 iMac 27" if I let it, albeit with the caveat about the 40GB of RAM that's in the latter, which only ever got used when running VMWare Fusion.)