Okay! Finally got my setup how I want it for 2022!
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System is: base M1 Macbook Air 8GB, on a new Twelve South BookArc stand (hidden behind the Lando Calrissian action figure), connected to a 27" LG 27UL50 4K display via HDMI via Apple's USB-C Digital AV Multiport Adaptor.
Keyboard is a bluetooth mechanical Keychron K2 with Gateron brown switches and Keychron's retro PBT Apple keycaps (MUCH better than the cheap and horrible ABS factory keycaps), with Keychron's own wooden palm rest (the keyboard is TALL). The mouse is a Logitech G604, connected to the MBA via a USB receiver.
This keyboard and mouse setup is a life-changer, as I also use a gaming PC (under the desk), and both the keyboard and mouse can switch between the Mac and PC at the touch of a button (the mouse switching between the USB receiver on the Mac, and BT on the PC).
The Harmon Kardon Soundsticks are the wired version and are connected to the PC. Which means the last piece of the puzzle for me is a good set of BT speakers for the MBA - I know there is a bluetooth version of HK system, but I think it is out of production. Wireless is important for me, as I take the MBA everywhere when it's not used as my desktop system. If anyone has any suggestions, let me know!
The LG 27UL50 is their bottom of the range (cheapest!) 4K display, but I'm extremely pleased with it. The display is connected to a gaming PC under the desk via DisplayPort, but having tested HDMI vs DisplayPort on both the MBA and the PC, I couldn't tell any difference, and the Apple AV adaptor is the easiest way to have a one-plug solution (power, HDMI at 4K 60Hz, and the USB receiver for the mouse). I'm sure on a higher-end 4K display, DisplayPort would be preferable.
The aluminium riser is from Amazon - there is a lot of junk on Amazon, but this riser is rock solid. The display stand is not height-adjustable, and I couldn't be bothered replacing it with a third-party stand.