An M4 Mac is way more powerful than an iPhone 16, but the iPhone is powerful enough to prove a much better experience on normal tasks compared to what that 2010 phone could at the time.
Basically I think everything has enough headroom that it’s not the compromise it would’ve been before. The biggest constraints on an iPhone’s performance are the battery and cooling. If you’re plugged in the battery doesn’t matter. And unless you’re not playing a fancy game cooling may not be an issue due to headroom.