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16GB/1TB M1 air here. I have hundreds of tabs open and my system rarely skips a beat. In my opinion the M1 architecture does a good job of managing the RAM, but it's always a good idea to future proof the system and get 16GB of RAM. For storage, I think the 1TB is overkill for me since everything I do is in the cloud, but definitely bump up to 512. I was able to get a good deal on mine through the Apple refurbished store I saved over $300, but if you want the latest M2 that may not yet be an option.
 
I’m in a similar situation (using around 200 gigs with 8 gb ram), and I’m planning on keeping the same storage but upgrading to 16. I don’t need a ton of storage, and having it avoid slowing down is most important.
 
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