IMO it looks pretty iconic. An all-screen look would've been very very cool, but I don't think this looks bad.
Also, I'd imagine with this design the motherboard, cooling and speakers don't overlap the screen. I wouldn't be surprised if it's just much cheaper to manufacture them this way, or if since this is supposed to have a beefier sound system and an M1 configured to run hotter, there were other considerations with having screen and logic overlap that would've added thickness beyond just that of the stacked components.
At the end of the day Apple is one to choose thinness over all other things, and to leave room for future upgrades haha.
but seriously, the cooling system and speakers are built around it. Speakers in particular obey the laws of physics, so they either need to go behind it or under, and someone made that call.
With a bezel less display you need somewhere to attach post-it notes.