People don't realise how the RAM is used. Here is a little history lesson which will help you all understand.
Back in the classic MacOS days - 1990's and earlier, the user would allocate the minimum and maximum RAM allocated to each application. Usually done in the get info screen for that application. The application would have that much RAM allocated to use. It didn't matter how much of the allocated RAM you allocated for it, all of it was only available for that application.
Say you set an application with a max of 20MB of RAM. That entire 20MB can only be used by that one application. If the application actually only used 10MB, the other 10MB goes begging, unable to be used by anything else. Functionally it's 10MB doing nothing.
Moderm MacOS on the other hand is similar, but different. It automatically allocates the maximum amount of RAM an application can use. However this amount is not fixed. It can be changed on the fly if other applications or the system needs it. Say an application is allocated 20MB. But it only uses 10MB. That other 10MB is not wasted so to speak. The OS can move some of that RAM to another application.
Think of it as the OS dynamically adjusts the RAM allocated to each application and process to ensure the least amount of RAM required is allocated to each application, with enough of a buffer so if a spike in RAM requirements happens the application doesn't run out of allocated memory. Of cause with more applications and processes running concurrently, the less buffer each app and process can have.
As a side note back in the classic MacOS days, you set how much virtual memory you wanted. That portion of the HDD was then effectively used up by the OS for that one purpose. Closed off to everything else unless you changed how much virtual RAM you wanted. Modern MacOS dynamically does this and only uses as much of the HDD or SSD as required for virtual RAM (often called swap disk these days). Since virtual RAM is created and deleted "so to speak" when required, there's no unused virtual RAM sitting there doing nothing.
So it's a good idea to leave some of your main drive free for virtual RAM usage.
So overall this makes 8 and 16 GB of RAM in ARM Macs not as bad as people think. Also the M1 uses RAM more efficiently by way of it's unified architecture. If you are on the fence I'd wait for real world tests to see if and when the bottlenecks start occuring in people's workflow with only 8GB.