If she is using it for videoconferencing with Zoom, the M1 makes a lot more sense based on just that part alone IMO. Zoom tends to be CPU intensive, and the Intel MacBook Airs have both weaker CPUs and very weak cooling capability. They tend to get pretty hot with only moderate workloads, and Zoom can push systems surprisingly hard. It can translate to major fan noise and short battery runtimes, as well as a very toasty lower body.
I usually have skepticism towards first generation devices, but the M1 Macs are using an established chassis and Apple has been working with ARM CPUs for over a decade, so there are established designs within these new devices. Further, the M1 Macs do not generate tons and tons of heat, which has historically been one of the top killer of Apple laptops (and often electronic devices in general). And while no one can predict the longevity of any system, the extremely low amounts of heat are promising signs for longevity. The other promising sign is that the transition itself is moving more smoothly than anyone ever could have imagined...Apple has been preparing for this for a very long time, and they have clearly spent tremendous effort on preparing for this moment.
That's not to say the Intel MBA is bad. My brother has one of the most recent i5 MBAs and likes it a lot. However, the M1 improves upon its greatest weakness, and using Zoom a lot really exposes that weakness. As he is using Zoom a ton, he's considering getting rid of his and replacing it with a M1 MBA.