At the same price point, the M2 is the better choice in every regard except for amount of RAM and SSD speed, but for the latter two, you won’t notice any difference with your usage. So I would definitely recommend the M2 MacBook Air. You’ll also have a good chance of having a longer time of macOS support.
However, the M2 MacBook Air might have supply issues for a while and even if you can get one, it might still be quite a bit more expensive than the 16GB M1. So that would be an argument for the M1.
But why not just get the 8GB M1? You’ll find good deals online and you’ll be able to get it quickly. The 8GB M1 is a great machine and good value for money, though I understand it might feel a bit strange to buy a 2020 laptop in July 2022.