Macs have had fast SSDs for a while and as you say compression has also been done for a long time. M1 made no difference whatsoever to memory usage. The posts similar to above seem to just be an attempt to fanfic-justify what's an actual regression for some.
For many people 16GB is absolutely enough, and Apple had to start somewhere. But if 16GB wasn't enough for you yesterday, it isn't enough for you now.