Well, to be fair, the 16" MacBook isn't "just screen real estate". I still have mine. The following things still give me pauses:
0. 4 Thunderbolt 3 ports. Arguably very important to some.
1. Screen real estate, yeah.
2. Speakers. All M1 MacBook speakers suck compared to the 16" MacBook Pro. In fact, all laptop speakers suck compared to the 16" MacBook Pro. Since I'm used to the 16", My M1 MacBook just... sucks. It's not a minor thing.
3. Microphone. Much louder, clearer, and fuller sounding on the 16".
4. GPU. The M1 is fast, but it can barely hold 60fps @ 1080p in some games (lighter games don't count). The 16" MacBook can play most games 60fps @ 1080p easily. Some others reach 60fps @ 1440p, and a select few reach 60fps @ 4K.
5. Full compatibility with all games in existence. If it doesn't work under MacOS, it'll work under Bootcamp all the same.
6. eGPU support for even more graphics performance if the built-in GPU isn't enough.
7. Bigger trackpad (arguably not really a knock against the M1)
8. Battery life still lasts around 7-8 hours. M1 with the same usage lasts about 10-12 hours, so... while M1 lasts a bit longer, it's not by a significant amount.
9. Surprise, the 16" MacBook supports 4K @ 120Hz. The M1 MacBook doesn't.