I decided to go with the 8GB Air.
I've seen a lot of people say that it's better to get more memory rather than less so you have it if you need it later. At first this is a reasonable claim, but when you think about it, it makes little sense. If you use more computational power in your computers and you depend on it for your work, then you'll want to wait for the higher-end models or get the 16GB M1 now, which will pay for itself through your work anyway so in this case you don't really have a dilemma as you don't have the luxury of putting your work in the balance.
If, however, you are torn between these two options, it means you are not guaranteed to need 16GB so in that case I don't think it makes sense to say you should go for the 16GB just in case and for future-proofing. The logic that you should future-proof your device this way fails to account for the very real possibility that you will not actually know if someday you've made any gains with the extra RAM, so in reality you're agreeing to pay more money immediately while also agreeing to an outcome that you may not be able to quantify. This is not just illogical, but also out of line with how you'd usually value the device you're buying. Every time a new device comes out, people gauge the features in the context of the price, so how does it make sense to make a purchase decision based on the potential for a return that will be difficult to determine if it ever came to fruition and even more difficult to gauge if it did.
CTO availability is less with these machines, which suggests Apple is not working hard to get the 16GB into people's hands, which by extension suggests that they are confident the 8GB is plenty enough for a vast majority of users. Then consider the reviews which have exceeded expectations, and these machines were already built-up too much. When it turns out that an 8GB machine outperforms a 16GB or higher machine handily, it would be sensible to at least consider that there has been a shift in the way specs should be viewed.
It seems to me that going for the 16GB model because you're in doubt how much you need essentially means you're discarding the reviews and user experience so far (so basically all of the info you have available) out of worry, and that is an expensive way to make purchasing decisions.
To clarify, I went from basically already deciding on the 16GB Pro even before the Apple event to ultimately deciding on the 8GB Air now. Ever since the event I've been contemplating all of this, reading this forum, the reviews and keeping a close eye on the Activity Monitor in my 2017 Air. So after this "journey" I cannot find a single reason to justify the 16GB purchase as I cannot see where I would need it, and I also cannot reasonably expect that something will happen a few years from now that will change RAM requirements to my disadvantage. Apparently 16GB a month ago is not superior to 8GB today, and this is coming from people who are currently handling these machines. So I'm gonna say "Thanks Apple, nice one" and spend half of the price difference to the initially planned 16Gb Pro on the Airpods Pro instead.
Rant over.
Disclaimer: this is not to say it's stupid to buy the 16GB version even if you don't necessarily need it, because if money is not an issue, then go ahead and max it out and enjoy it, good for you. I just wanted to pitch in to analyse the thought-process of deciding on the 16GB model for the people who are actually weighing it against their needs and cost as I think it's very easy to fall into this "maybe I'll need it" line of thought.