There is nothing wrong with the point Russell was making. It's not applicable here.
If anything, panpsychism is a simpler and more economic explanation of consciousness than meterialism. Because materialists think the universe consists mainly of dull matter, that in a few rare instances comes together to form brains that experience consciousness. This phenomenon is said to emerge from matter somehow in a process that is not understood.
Panpsychists say it's simpler than that. Awareness is a property that is fundamental to all matter. In some entities it is more complex than others because of the structure, but it doesn't "radically emerge" at any point. It's always there. It's a simpler and more elegant explanation of consciousness.
Thomas Nagel offers the definition of awarenss that it satisfies the question: "what is it like to be a bat... or something else?"
What is it like to be a human?
What is it like to be a dog?
What is it like to be a bat?
What is it like to be a spider?
What is it like to be a tree?
What is it like to be a crystal?
What is it like to be an atom?
If the answer, from the inside, is something more than "nothing" then that is "awareness".