I got my M1 MBA today and tested it with the Dell D6000 DisplayLink hub.I just bought a DisplayLink hub (Dell D6000) and can report back on multiple monitor performance when my M1 MBA arrives next week.
I have a 24" monitor connected with HDMI and a 32" monitor connected with HDMI-->DisplayPort. The hub is one USB-C connection and provides dual monitors (up to 3 in 4K), audio, power, and several USB-A connections.
To get it working I had to download the DisplayLink drivers for macOS.
The displays look fine and feel like normal. I was able to play YouTube videos and couldn't tell the difference.
It preserved my display arrangement when I unplugged and plugged back in.
Overall, it's a decent solution and I have no complaints, though I would still prefer if the M1 chip is able to natively support multiple displays.