It uses the 6950 DisplayLink chip, which can do 4K@60Hz.
It's 90 dollars and drives 2 screens.
Software is less good. I had to enable Rosetta2 to get the pkg to install. Then you have to boot to recovery mode to allow signed 3rd party drivers. And you get a creepy notice that someone is watching your screen, which is how the display driver works.
Performance is pretty good, just a bit laggy on mouse movement.
Unfortunately I don't think the M1 Air supports TB daisy chaining unless you're ok with mirrored displays. I still can't decide if I want to ask my job for a new computer, a new dock, or new displays lol.
The way I have it set up: the i-tec dock is connected to a regular USB-C hub (from Ugreen). The USB-C hub is also connected to a 4k monitor. This way I connect 1 cable to my Mac and get everything: power delivery, Ethernet, peripherals, 4k monitor running natively and 2 2K monitors running on displaylink. It is… perfect. I havent touched my desktop computer for about a year.
Basically it is better to use the Displaylink monitors for static content - running 4K video on a 4K monitor on Displaylink would probably take about 40% CPU on my M1 chip. So everything dynamic goes onto my native 4k monitor, whereas the Displaylink monitors have easier content - browsers, vscode, notes etc.
But like, I regularly also play video on my 2K displaylink monitors and honestly I never ran into issues, or noticed a difference. Just dont do this on 4k monitors I guess.
Sorry for the delay, still havent figured out a way to get notified about replies on HN.
Since I also don't get notified of replies I've been checking back on this comment in hopes that someone had a clever solution like yours. Thanks!
At least, not the last time I tried.