It's hard to stress just how much this depends entirely on individual use cases.
I just left Activity Monitor open for a bit. I am using my laptop as I usually do which is about 15 Chrome tabs open, music playing in the background, Signal and Telegram open for messaging, my VPN client and Little Snitch running in the background, and a couple other things sitting there idle like Notes.
I have 8GB with 6.44GB used and my swap is only 571MB while the memory pressure graph is low and green. Especially impressive when a lot of that software is running through Rosetta 2.
Have also installed Logic Pro X on this machine and it runs super fast. Didn't look at the numbers because it was doing initial setup, installing extras, etc but it did it all very quickly and ran smoothly afterwards. I do plan to use this machine to mess around with light music production. My 2015 rMBP struggled to run Logic but no problem at all for the M1 MBA.
iMovie is similarly super fast on my MBA. iMovie on my rMBP could not even play back 4K video from my iPhone without hanging let alone do actual editing. Exporting even 1080p made the fans sound like a 747. The MBA doesn't break a sweat. I will also be curious to see how Handbrake performs when it is optimised for Apple Silicon.
Something I'll probably do more often is run Unix tools once Brew is properly supported. Then I will use this machine for some light scripting work, generating static websites, and so on. But I'm not doing anything heavy like game development and writing Python scripts or static webpages is not CPU or RAM intensive. Even my ageing rMBP can do that quickly.
I know the majority of my use will be Chrome, Music/Tidal/VLC, Signal/Telegram, occasional Unix/dev stuff, with basic software like a VPN and Little Snitch running in the background.
If I was, say, exporting multiple FCP projects daily, rendering 8K video in Blender, or opening huge RAW files in Photoshop I am sure this machine would struggle. As many have said "it is not magic." But it does have superior memory management to a traditional x86 machine. It makes more sense to compare the M1 to the A12Z or A14 where you get much less than 16GB RAM but they are still blazing fast SoC's in real world usage.
If your use cases are 8K video rendering and manipulating huge RAW files in Photoshop, yes, get 16GB RAM and make sure you have an actively cooled machine (so, not the MBA) or just wait for the next gen Apple Silicon chip which will most certainly be better for your usage and come with more RAM to begin with. The M1 is an entry level chip as has been said many times already.
For the vast majority of users though, who will be like me and mostly use their laptops for light tasks with heavier stuff featuring only here and there, even a base MBA would do this fine. I went for the 8 core GPU and 1TB SSD for some future proofing but I am pretty confident 8GB RAM is fine for my use cases.
I therefore recommend people stop watching YouTube videos and reading about what other people do on their computers and instead think about what they do on their machines and what their hardware requirements are. Also consider how long you are planning to keep the machine as well. All this should drive your decision rather than potential speculative resale value or what people on a forum say is better.
As a final note, these YouTube videos are mostly running software through Rosetta 2 or beta versions of Apple Silicon ports. It is highly likely that a properly optimised Apple Silicon build of whatever given software you use will run far more efficiently than it does through Rosetta 2. R2 is mostly reliable but you do see big efficiency gains in CPU/GPU intensive work with native apps, as you'd expect.