The M1 already outperforms every iMac made. They could go the “increase cooling capacity” route with it like they did with the MacBook Pro, and add some I/O. They’ve already shown a willingness to offer a less performant chip in a lower priced model (with the MacBook Air) so it wouldn’t be surprising to me at all if they went with the M1 in a lower tiered iMac.
Actually, I’d have to check the graphic capabilities of the M1’s currently out. Could they drive a screen of the type that has been rumored? Also, I really WOULD like an earlier look at the next generation of Apple Silicon, but preparing myself for just a repurposing of the M1… actually, I’m preparing myself for no iMacs on Tuesday