The M1 is already more than 5 years old, and likely only has ~3 new OS releases in it.What do you mean? What features am I missing on MacBook Air M1 8GB? There is Apple Intelligence.
The M1's NPU TOPS of 11 is really weak, so it wouldn't surprise me if Apple defends dropping the M1 due to AI performance. The A18 Pro is at 35 TOPS, and the A19 Pro is going to be even better.
The M1 Air is just an old machine, and Apple should ship something better (in some ways) at the same price point.