I would take this more as an indictment of ARM laptops rather than any "software rendering is magically fast" statement here. Modern Linuxes on most recent-ish (<5 years old) x86-64 CPUs can quite easily software render at the same speed and quality as that demonstration.
This is a stronger statement of how far the project has come in terms of making everything operate smoothly on the M1, which is excellent (it's been what, a year?).
My prediction: AsahiLinux will start becoming the Linux benchmark king in terms of "out of the box" performance, mostly due to the console effect that Apple's M1s offer them. There's such a limited set of hardware to target they will be able to focus more on stability and performance than other distributions.