I seen a lot of discussion against the M1, that discussed the limitation with doing multiple video stream editing could certainly use the 32 GB Ram. But most average users could get away with the stock 16GB Ram that is on majority of 14"/16" configurations as there are lot of YouTube presentations to back that up.Honestly most people would be well served by the M1 MBA. And 99% of people would be fine with the Pro Base Model. That said, many more people will buy the Max who will never come close to needing all of that power.
I went with the M1 Pro Base model but upped the ram to 32 and storage to 1TB which is probably overkill. I keep laptops for at least 5 years and that will be just fine for 5 years and maybe even 10.
Yes Apple should offer a larger Air for very casual users.
While I don't see the typical usage that you would need really much more than the 10/16 M Pro with 32 GB + 1 TB storage you chosen. Apple does provide the M1 Pro Max with a lot more of a GPU options. One would think you have to be aware of is the CPU cores is the same except for the lowest priced 14" config. I would have hoped that there were more CPU cores on more powerful M SoC's, but its evidence that this is only their initial M variations.