I used to have a 2017 revision MacBook Air when I was running a movie theatre, it was my business laptop. I can't overstate how incredible a jump it is from one of these machines to a machine with a Retina display. It's like going from watching something on VHS and then switching to the 4K Blu-Ray. It's also really hard to go back to a device without a high pixel density display. The visual equivalent of silk vs sandpaper.
Battery life is also a showstopper on Apple Silicon. I get about 17-22 hours battery life on my M2 Air, the higher number is low-brightness and no Internet, just using Scrivener. When I was growing up, a laptop with a battery that lasted more than an hour was an incredible achievement. Now I can do two days worth of writing without plugging in. If I go away for the weekend, I take the M2 with me and leave the charger at home. It's that good.
So yes, it will cost you a fair penny to upgrade, but I think it's worth every red cent. I would go with the M2 Air over the M1 if you can afford it because it's the design I think they should have used with the Apple Silicon MacBook Air since day one. More ports, better webcam, WAY better microphones and noise rejection, and MagSafe just to name a few reasons. It's as much a leap forward for the externals of the Air as switching to Apple Silicon was for the internals.
Good luck with your shopping. Curious to see what you're decide.