I've got the 8GB M1 Air. It works fine for me memory wise.

In some ways the Neo looks better than the Air for things I have had problems with in that it looks easier to replace bits - my battery and speakers are both kind of knackered.

I think the people who buy the MacBook Neo don't care.

MacBook Air has double the RAM but is nearly double (>1.8x) the price.

Flash storage and memory compression mean that you can do pretty well running a single app at a time.

I think it’s too little for this day and age as well, but in Apple’s defense, their RAM compression on ARM works amazingly well and performs similarly to 12GB on Windows.

With that said, I hate that you can’t upgrade the RAM or storage.

I hope that at least one side effect of this is that developers will have a business case for performance improvement dev time, as those machines will become a juicy target, similar to video game consoles that may not have the best specs but are consistent and have a large number of units in the market.