Realistically I think:
M1 Air is for most people with casual uses,
M2 Air if you're after a new design and don't mind spending more,
and M1 Pro or up 14/16 MBP if wanting a better screen and speakers, and ram/SSD.
Of course there can be some other delineation but that seems like probably how most people sort out the options in their head.
...Still can't help but feel like M1 Air is gobbling up (cannibalizing) higher end models for most normies, because it scratches the itch at an insane price. It's regularly $800 or less for the base model, that is bonkers value IMO. And it's not like M2 or M1 Pro for casual uses is making M1 feel slow by any stretch (especially coupled with the NAND situation on M2 Airs and now M2 Pro 14 and I believe 16" as well)