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With an 8-core CPU and 8-core GPU, M1 on Mac mini delivers up to 3x faster CPU performance¹ and up to 6x faster graphics² than the previous generation.
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1. Testing conducted by Apple in October 2020 using preproduction Mac mini systems with Apple M1 chip, and production 3.6GHz quad‑core Intel Core i3‑based Mac mini systems, all configured with 16GB of RAM and 2TB SSD. Prerelease Final Cut Pro 10.5 tested using a 55‑second clip with 4K Apple ProRes RAW media, at 4096x2160 resolution and 59.94 frames per second, transcoded to Apple ProRes 422. Performance tests are conducted using specific computer systems and reflect the approximate performance of Mac mini.
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Testing conducted by Apple in October 2020 using preproduction Mac mini systems with Apple M1 chip, and production 3.6GHz quad‑core Intel Core i3‑based Mac mini systems with Intel Iris UHD Graphics 630, all configured with 16GB of RAM and 2TB SSD. Prerelease Final Cut Pro 10.5 tested using a complex 2‑minute project with a variety of media up to 4K resolution. Performance tests are conducted using specific computer systems and reflect the approximate performance of Mac mini.
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So, yeah. The mac mini looks very good and is "cheap" for being an apple product. The performance gain looks BS to me at this point of time. They're comparing the M1 with a i3 running a program transcoding video using a format propietary of theirs. I'm not sure but looks like cheap marketing and these tests are backed by hardware instructions and not really CPU/GPU bounded.
Of course nothing against offloading work from the CPU in new chips, but the big numbers are just PR.
Also, a fair comparation from the price POV would be between the M1 and a i7-10510U as both are relatively new, have the same TDP and came with an integrated GPU.