When I was checking out the MacBook Neo a while back I was disappointed that the resolution is not natively x2 scaled. It uses fractional scaling when macOS handles fractional scaling quite poorly. I've set the resolution on my M1 MBP to 1280x800 so it was x2 scaled and clarity improved significantly. But I also sacrificed usable space because apps don't adjust, everything is just made larger.
At work I use 1 or 2 monitors plus the laptop screen (on Windows). At home I just use a single 55" 4K TV for my monitor and place apps center, left, right, and up top for rarely used stuff (on Linux). The desktop metaphor always wanted a big display but you're right - most Windows apps expect a full 1920x1080 for themselves.