From what I have read the specs and performance would be similar to the M1 which is often sold for $599, but with the A18 Pro chip instead of Apple’s M series. The price is rumored to be in the $599-$699 range. So I don’t know that it will make a huge splash. It may just mean that Apple discontinues the older M series sales going forward instead of dropping the price.
I see this as being a good fit for the consumers that buy the base iPad and iPhone 16e. A solid base piece of hardware without all the bells and whistles. If you don’t need the fancy extras, then it’s nice to get Apple quality on a current product for a lower price.