Throttling is fine in a laptop. I think the more concerning part is the oscillations. The CPU should reach a steady state where it can provide consistent performance at 100% load.
With modern "burstable" CPUs, aren't they always peaking for short periods of time? Aren't there different heat thresholds, some that are more dangerous than others?
Like maybe you could change the throttling curve from (percent "max") 120-120-100-100-80-80-80-100-100... to a more consistent 90-90-90-90-90... but as long as the CPU knows internally when to throttle down to avoid damage, does it really matter either way? Fast-fast-slow-slow vs medium-med-med-med?
it depends on how hot it gets in each sequence, but it seems to me the m2 laptops get hotter than the m1 laptops, and if this OP is to be believed, reach a higher peak temperature that's over 100 degrees c.