If you can afford 16gb great, otherwise 8gb will work great too, it's not nearly as bad as some people make it seems. Where I live the price of the 16gb model is ridiculous, I can literally buy two Airs M1 8gb for the price of one Air 16gb.
My extreme usage recently was Resolve, Affinity Photo, xcode, vscode, chrome, a docker container running wordpress and safari with a bunch of tabs all opened at the same time, the swap got quite big at 6gb+, but not any noticeable slowdown, swiching between apps on mission control didn't drop a frame. I think most reported performance issues are related to Monterey memory leaks that are getting better on every update.