That's a weak sauce upgrade and the iPad Pro will forever be ruined by the garbage iPad OS rather than giving it Mac OS lite and making it a real alternative to laptops for work.
Maybe they're planning to merge iPad OS and macOS in future? Kind of like what Google is trying to do with chromeOS and android.
M5 is a desktop chip after all, so it feels like they're kind of laying down the future ground work for it.
Also, future MBPs will come with touchscreen displays which doesn't really work unless you've a touch friendly OS like iPad OS.