Thanks for the explanations from
@mr_roboto and
@jdb8167! I understood what you both explained. Although I am not a professional from fields like CS or EE, I thought I knew how CPU and RAM work. There are two reasons why I asked.
1) According to many comments across the Internet (especially here in MacRumors), the way RAM works seems quite different from what it used to.
2) I saw the video from Max Tech in which they tested the 8GB and 16GB MacBook Pro models. When they tested the 8K RAW video exporting, the 16GB model maxed out the GPU, while the 8GB model only used about 80% of GPU. They thought the memory size might be the limiting factor here. Meanwhile, the temperature difference (on the chip) between them is 20 degrees Celsius (50 on 8GB model, 70 on 16GB model). Of course, this is the only test they got that 16GB of RAM makes a huge performance difference.
I put the video link here with the corresponding timestamp for your convenience (although I thought many of you already saw it).
So that's why I am wondering whether the thermal issue would be the limiting factor for MacBook Air M1 models to max out the 16GB RAM. But really, thank you all for the great responses!
(BTW, I am not really going to use M1 to do heavy video editing, but I am quite interested in using it for scientific computing.)