It's basically the lower-tier Mac Mini that's permanently attached to a (relatively small) monitor that cannot be repurposed, and you'd probably be better off getting a separate monitor for a Mini to allow upgrading those separately.
Especially true with the Mac Studio being available too.
For 90% of people , an iMac is less fuss than other devices.
This thread reminds me of the Microsoft cloud 365 PC they just launched where everyone was confused by the market for it and really just cemented the fact that a lot of engineers aren’t very in touch with the actual workforce out there.
They're deployed by the hundreds, in one or two configurations, then are replaced after 3/5/7 years. They never get repurposed, they just get recycled/refurbished when they reach end of life or the value has been depreciated to zero.
I think the iMac is kind of a relic from a bygone age where it was more difficult to fit desktop computing power into a laptop form factor. Now that laptops have gotten pretty beefy, the difference in compute between them and something like this is small enough that it probably makes more sense to opt for the mobility most of the time.