I'm not on the super-power-user end, but imo the price/performance for the air, as well as the form factor seems to be a sweet spot.
Only time I got any similar issues were when I was hitting the ram pretty hard, but MUCH better than my i9 32 Gb with the same problem on memory (FUCK YOU DOCKER!)
On the M1 air, I sometimes notice that the battery is draining a little bit quickly, and will check and see that I have like 10 Safari windows open and minimized, with over a hundred tabs in total, but I hadn't noticed any slowdown or performance issues.
I suggest you try wired before blaming the CPU.