The A18 Pro is 46% faster than the M1 in single-core tasks, and almost identical to the M1 on multi-core and graphics tasks. If you wanted to get rid of the M1 MacBook Air but have decided that even today, its performance characteristics make it perfectly suitable as a low-cost Mac laptop, building a new model on the A18 Pro would not be a bad move. It wouldn’t have Thunderbolt, only USB-C, but that’s not a dealbreaker on a cheap laptop. It might re-use parts from the M1 Air, including the display.
I like that Apple sells a laptop at $649, and I think Apple likes it, too.