My first MacBook Air was an 8GB/512GB variant with the (8 Core GPU)
I mostly played rust, this specific game requires minimum of 10GB of ram. And it always warned me while playing on a larger server. (WARNING YOUR SYSTEM DOESN'T MEET THE MINIMUM REQUIRMENTS - ARE YOU SURE YOU WISH TO CONTINUE)
The M1 Air with 8GB of ram practically laughed at it. The game would steadily use 15-16GB of ram just for the game..
The M1 Air with only 8GB of ram, easily ran it too.
I currently own the 16GB/1TB model, everything runs about the same. The only difference I notice, is when I would minimize the game rust, and then re-maximize the application. The 16GB of ram model can resume without a skip. And the 8GB model would take a split second to become smooth again. (Not enough to really bother me) actual game play was always smooth with either model.
Outside of this, I see no problems with the 8GB M1. You can seriously push the limits on these machines. And 8GB of ram doesn't limit them in the slightest.
I wanted the 16GB/1TB model M1 Air for further future proofing, and I believe the M1 is probably the greatest silicon available today. And the future is only going to get better! I plan to keep this machine for a while.
Apple operating systems seem to be pretty well optimized, and the M1 8GB can push 20GB of ram usage smooth as anything.. I imagine it'll only get better once applications are actually ran natively.
I haver owned both systems, and if you can only afford the 8GB M1 then you'll be just fine, I assure you! Although, if you can afford a 16GB of ram M1, then absolutely! Why not get 16GB of ram? You can push even further ridiculous amounts of ram usage.