I was hopeful, but it's not quite there yet. It's really, really slow on my M1 with Tahoe.
( ls /Applications/.app 2>/dev/null ls /System/Applications/.app 2>/dev/null ls ~/Applications/*.app 2>/dev/null ) | wc -l 730
For me, it was really slow at the beginning, but it got much better after that. I'm not sure why, but this at least shows that there are still big problems with the current performance...
One mistake I did make when upgrading was not updating little snitch, and I couldn't get any network connection for a bit until I reinstalled that app via USB.