The unified memory IS DDR. LPDDR4X specifically.
You save some back and forth from transferring CPU data to GPU memory and vice versa, but a file is a file, a workload is a workload, a 6GB Xcode compile or Photoshop compilation is not going to use less memory than what it is.
All of the reviews that are surprised by the 8GB performance share a few things in common. For one, they make the comment and never follow up on trying to understand why it is the case, and two, they almost never try the same thing side by side with an Intel mac and see if M1 is in fact using less RAM somehow.
macOS already had reference counting instead of GC, it already had memory compression, it already had 3GB/s SSDs (except in the Air which got that now), what people are really feeling is that it's just plain faster, at everything. Unified memory isn't the new thing (every APU has it, every recent IGP has it).
If you thought you needed 16GB before M1, you probably still do now. If you were just doing the regular stuff, browsing, most office (Excel can get as heavy as anything if you do massive datasets), etc, the 8GB will probably feel plenty fast. Basically if you have a single need that needs lots of RAM, like a single big file, render, compile etc, you will need the RAM, if not it can swap and you may not notice.