And to be clear - TDP is not a measure of how much power the CPU uses, it's a measure of how much heat your cooling system need to dissipate in order to to meet Intel's base clock on all cores. That's why it's a weird idea to make it a user-configurable setting. Especially since Windows already has power settings to passively cool and/or throttle the CPU. Turning off the fans should help efficiency at a fixed amount of work.
I'm sorry, but I think your comments need a lot of clarification, with both your points about Intel exceeding TDP specs or that TDP doesn't equal power consumption.
Point 1: In Desktops, you see a 95W specced CPU consistently using 160W. But Desktops use ridiculously sized heatsinks anyways with far more open room and additional internal case fans to help.
In Laptops though, if you really lie on TDP, you'll pay for it in performance or with the laptop running really hot. Because the manufacturer will rely on TDP specifications.
So ultimately I don't believe its them exceeding TDP as much as Desktops taking advantage of brick-sized HSFs with infinite PL2 time values. AMD does the same thing with Ryzen anyways, only to compete with Intel in performance.
Point 2: This is a natural extension to Point 1. Intel Datasheets show PL2(Turbo value) has to come down to PL1(TDP value), and over a longer time the value has to equal PL1. Because if you make the long average exceed PL1, then its the same thing as going over TDP anyways. If you are doing anything where you are running at max CPU demand for 10+ minutes, then the CPU can't exceed its set TDP values.
Also because of that point in that Datasheet, in any workloads that makes the CPU hit the TDP barrier, TDP equals the power consumption. Of course if you are web browsing or watching a video it'll be idling 95% of the time and in that case TDP doesn't equal power consumption, but why talk about TDP at all then?
I would argue that gaming is usually a bursty workload since it's lightly threaded. How often do modern games realistically get 100% CPU utilization on a laptop like this
Also, in the Razer specifically, they said the gaming oriented version with the GTX 1650 uses the 15W TDP Icelake, while the Mercury White with the Intel Iris Plus graphics uses the 25W TDP Icelake. So it seems to be since its such a small chassis, they are considering system TDP, not just the TDP of the individual components.
And for the Mercury White version, 25W TDP on the Iris Plus means either the CPU or the GPU will try to be the majority consumer of the TDP. Therefore in that case, setting it to 15W will use less power in games and thus more battery life.*
Gaming isn't considered bursty since its a very performance sensitive application and there aren't really true idle periods unlike browsing. And unless you are capping your frame rates, then the CPU and the GPU will try to run fast as possible.
*(Not that it matters anyways, since all laptops get 1.5-2 hours when running games)