I'm certainly not expecting Apple to start pushing a Maxxed AppleTV in television ads head-to-head with the PS5.
But they did overpower the latest iPad Pro with the M1. Perhaps just because they could.
The AppleTV now sits on a shared tab with Home on Apple.com, with
rumours of a HomeOS coming soon.
You might buy the AppleTV for the TV and HomeOS stuff, and the gaming upgrade simply sweetens the deal.