I have a personal M1 13" Air, and a work M3 16" Pro, and other than the silly 8GB limitation, I don't notice much of a difference in what I do when using the Air.
There's three buckets of performance in interactive software: so fast it doesn't matter to the user, slow enough the user notices but doesn't lose focus, and slow enough the user has time to lose focus. The lines are obviously different for each person, which is why some people feel that software is "fast enough" well before others do.
The jump from an i9 to an M1 moved a lot of tasks from group 3 into 2, some tasks from group 2 into group 1, and was the biggest perceived single-machine performance leap for me in my professional career. I have an M1 Max or Ultra on my work machine and an M3 Ultra in my personal machine - after two years of the work machine being so visibly faster, I caved and upgraded my personal. The M3 Ultra moves a handful of things from group 2 to group 1 but it's not enough to move anything out of group 3.