Whilst this may allow them to take the performance lead in some metrics, that performance per watt ratio is not gonna get any better whilst still stuck on the 10nm process.
To a certain extent this is bad for them as the newer Zen 4 is an OEMs dream - build the cooling to whatever price point you want and the performance will taper accordingly - the point being that Zen 4 will allow some OEMs to bodge the cooling but still get a reasonable return on performance. If they were to do the same with these Intel CPUs it will cost more performance - basically these are going to need expensive cooling solutions.
I think Intel have made a tactical mistake - it looks like they aren't going to do a revised 6P/0E version like they did for Alder Lake lower end parts. Ironically this is the market segment where a revised 13th gen core design would do the most damage in terms of stealing custom / OEM orders from AMD.
The 6-core 12400 was already trading blows with the 5600X, and the 12100 wasn't that far behind - certainly it's probably the best quad core option right now - a 13th gen version may actually tip the balance especially as the cost of the Zen4 6-core right now is prohibitive and the only AMD option for a CPU with IGP on AM4 is the cache stripped 5600G/5700G.
More performance for a similar power envelope and not much more in pricing would have probably been a good move.
Worse still, AMD can now move to position AM4 as the value option and start reducing pricing of some of the higher end parts (e.g. 5800X) to fend of Intel's mid/lower range parts with more cores, each of which having similar IPC.
Instead Intel have chased the performance crown, which they might win in some tests if their IPC improvement claims are correct... But it's a costly win and they've created a product that few OEMs will want and even enthusiasts will have some doubts about.
Remember the AM3 FX-9000 series - due it's high TDP and powerful cooling requirements it died in the market place - yeah for sure it's lower comparable performance also had a major impact but being difficult to package wasn't ever going to help. Intel at least have a competitive product, and I guess a better customer / fan base, as well as a better influence over many OEMs, so I suspect it will not be as bad, but still even if the i9 ends up as king of the hill I suspect it will be comparatively rare - the 13600K is the product to watch from this.
I'm not sure who the 13700K is really aimed at... The same TDP max as the 13900K but lower turbo frequency, half the E cores and less cache... It will need to be aggressively priced.