Having used my 14" for a week since my original post...
If you can afford it (or rather, if you're willing to spend that much - imho if you can afford a new 16GB/1TB Air, you can stretch to a Pro if you really
want to) and don't mind the slight extra bulk... 100% yes, oh my god.
The XDR display is worth 30% of the cost IMHO alone.
YMMV depending on whether or not you care about display quality but for me.... its a massive, massive step up. Go to the Apple store, look for some HDR content and try it out on a Pro, vs. an Air.
Or even fire up some HDR photos from your iPhone on the Pro vs. the Air. Its night and day.
Of course the air is still a great machine and still a bargain. But if you're on the fence, do not underestimate how gorgeous that XDR display is. If you do not plan on viewing HDR content on it then you won't notice a huge difference, but if you do watch some HDR video on it, it will ruin your tolerance for likely every other screen in your house. I didn't "get" the big deal around HDR until I played some HDR on mine.
The extra screen real estate and frame rate vs. the air is noticeable too. But the big thing is the blacker blacks and extra colour vibrance that you just can't demonstrate without seeing it in person (you can't show someone HDR on their non-HDR display over the internet

)
edit:
I've been looking for months and last I checked 1TB/16GB is a custom BTO option for the air, unless that has very very recently changed. It's possible in the US they may keep floor stock of that model (as imho 500GB is just... not enough to feel comfortable for the next few years, I routinely hit 400GB used on my machine
today - and I do tend to use my MacBooks as large high speed portable media from time to time on top of that), but not here where I live.