EvilExecutor They are making it optional for custom enterprise and embedded images, general home users though will in fact need at least TPM 1.2.
While I understand that this means that many computers won't get Win 11, Win 10 will be supported till 2025 so there are still many years of updates for that. Further the incredibly advanced and complex territory that our cyber security world is currently in means that to properly protect things you really truly do need a TPM chip.
I for one am actually looking forward to the requirement, even if it does mean my life at work will be a royal pain in the rear for awhile.