I really want the nano screen... there are circumstances where having it would definitely be beneficial to my work (photo editing). But I can't say that it's an absolute essential, as those particular circumstances are somewhat sporadic, and are not major impediments.
So, what's holding me up is the fact that, because this option requires 1tb (I only need 256gb), it turns a purchase that is in the $1000 neighborhood into one that (with a new Pencil having to be purchased too) is approaching $2000, which is much harder to justify. If my work environment commonly involved those adverse conditions where the nano would make a significant difference, I'd likely be willing to spend the money for it. But for me, it falls into the "that would be really nice to have, but I can live without it" category... I'd absolutely spend the extra $100, but I (at least at the moment... subject to change on a impulse-purchase whim) can't bring myself to spend that much money when my M1 is working just fine.
A secondary factor is that I'm a little miffed at Apple for only making this available for 1tb and 2tb. Perhaps production capacity of these screens is a constraining factor, so they figure they might as well get the most profit out of them that they can by tying this feature to their premium-priced higher storage options, hoping to nudge some buyers to opt for more storage than they need. Or maybe production capacity is not a factor but the thinking is that those who are going to really need this kind of screen are video production people who have more of a need for higher capacity anyway, so they don't want to clog up the inventory chain with 8 additional models that no one is going to want to buy anyway (due to the lower storage not meeting their needs). But if it is indeed the latter, it sounds like that might be a miscalculation, as it seems that there are actually quite a few people that like the nano screen even for casual use, or those like me who want it for work purposes but don't need that much storage.
Regardless, I hesitate to become a "this guy who has always bought 128gb-256gb iPads sprang for the 1tb just to get the nano screen" statistic on Tim Cook's spreadsheet. If they open it up to the lower capacities, I'll likely buy one. Until then, I'll probably just stay put with my M1 for at least another year or two.