I don't know what programs those who were dismissing SC performance are using, but current applications that would benefit from increased single-core CPU performance include gaming, many scientific programs, and certain office tasks (e.g., converting a PDF to searchable form using Adobe's optical character reader*). Also, no benchmark directly measures responsiveness, so it's possible an M1 might still not be as reponsive as someone would like when doing heavy office use (I can't say myself, but I'll have a chance to test one soon).
[*see
https://techboards.net/threads/request-for-adobe-acrobat-pro-benchmarking.3965/ ]
More broadly, while a (say) 20% increase in SC performance probably wouldn't by itself be noticeable to the end user, that doesn't mean companies should dismiss the importance of trying to work hard to achieve that increase each year. Because if you didn't, you'd lose out on a 1.2^10 = 6 x performance increase once 10 years had passed. And that would put you in a bad position, because apps and OS's are constantly increasing in capability and (yes) bloat, which means their overhead increases with time. Today's chip performance won't be enough to handle 2034's software well.