Sorry to say...seems like bad news. I won't defend Apple here, but I would expect they would point any of us (running 100% loads for anything) at a "Pro" machine.
I hope knowing all this helps you (and others) decide on hardware.
If it were me, I would consider selling the iMac while it holds good value to a typical 2D user (Photoshop, etc) who would not face the heat/fan/noise issue...and rethink hardware needs.
The M1s crunch the hell out of things with virtually no fans spooling up. Time to switch? We may very well see M series 27" iMacs very soon, and the 24" units are pretty darn solid for general work. I can't speak specifically to gaming, but they have been out long enough for there to be a lot of feedback now.
I was planning on switching to an M imac anyway (or a high qual LG + mac mini) - it's mainly for Logic Pro this machine and no probs there with noise so far.. the gaming is just for late at night. Waiting to see what is released in next few months.