I wanna chime in here, as this is the first post I've seen actually addressing the RAM issue.
I got the maxed out M1 iMac to replace a dying 2019(!) iMac. I'm an illustrator, and primarily work with multiple high res/layered Photoshop/Creative Cloud files. (All software is current.) The processor on this thing really seems to be fantastic, but the RAM... oh man. I'm constantly getting alerts saying I'm reaching the max limit on memory and that I should close some applications. Rarely do I have anything other than Mail, maybe a minimized browser and music or podcasts open. I was told when I ordered this thing that that 16G isn't the same sort of 16G we think of in previous Macs- it reroutes the memory as needed throughout the chip so technically you're getting more than 16. But even with that, what's there just isn't enough. I remember being shocked at that number, and it looks like I had good reason. (Edit- this was a fresh install, not migrated from the old machine.)
If there's any creatives working on multiple large files at once (pretty standard), hold off until at least the 32 (or even 64, etc) is released. I'm quite sure when that happens I'll bite the bullet and just trade this one, as returning it now is out of the question.
IMHO, Apple burned way too many calories shouting about the pretty colors, and not enough with the important details.