If you're assuming withdrawing at a safe withdrawal rate you're assuming you're not compounding. You're assuming a safe withdrawal rate from principal/dividends/interest that will, on average, leave the principal constant. Of course, if you're older and are not looking to pass down money you may be fine with drawing down principal to some degree.

So, yes, $2m should probably be modeled at about $80K income per year before taxes without touching principal but without building savings.

(May be somewhat higher with higher interest rates/inflation.)

That is not accurate. The 4% withdrawal rate is based on the Trinity Study[1], which showed that it was unlikely to exhaust retirement funds over a 30 year retirement. It already includes compounding and draw down calculations.

There's a whole active debate around exactly what numbers are sufficiently safe over what time horizons and what portfolio mixes. For a fun long read, see ERN's series on safe withdrawal rates https://earlyretirementnow.com/safe-withdrawal-rate-series/

[1]: https://en.wikipedia.org/wiki/Trinity_study

You have compounding but also inflation. You need to slowly raise your draw to keep the same lifestyle.