A replacement display is basically 70+% the cost of the entire machine.
AppleCare had to replace two of them on my Sandy Bridge MacBook Air. They blamed the bag I kept it in(when replacing it the second time), but they also sold me the bag.
This one is pricier but also doubles as a docking station/100w PD:
https://www.kensington.com/p/products/device-docking-connect...
They have some cheaper, more basic models too.
edit: for the record I think this limit is stupid and the biggest flaw of the Air. You're right that other than that, it's a damn near perfect daily driver.
I just took it for-granted that every laptop in this price range on sale today will by and large be able to drive two external displays, but nope!
I ended up using a "double wide"/32:9 style monitor - the Samsung CRG9 - these 32:9 panels can be had in 5120 x 1440 resolution, which is exactly the size and res of two 27 inch 1440p panels side by side but in a single display. Works great on the Air, although its not a super cheap option.
> https://www.samsung.com/ca/monitors/gaming/super-ultra-wide-...
This limitation is purely artificial/for market segmentation purposes.
I don't know anyone who went "Ah! only one monitor support!? I better move up the range to get that 2nd display support..." etc. You would really need to get into the weeds on the spec sheets to notice ahead of purchase.
I actually find many more people doing the opposite - choosing to move "down range" to the Air for the form factor, given it still has a great CPU. These power users who choose based on the great form factor get hurt the worst on this.
It's still for market segmentation but there is a hardware reason.
It handles it just fine at 8-10% CPU usage on an M1.