I begrudgingly admit that the M1 Air is one of the best computers ever made, having never liked Apple as a company. Not sure what kind of smaller you’re aiming for, but that thing is borderline too small, which is just about perfect.
If anything, I think the perfect machine for me would be a 15" macbook air. Same thin design, slightly larger chassis with an edge-to-edge screen. I don't need more performance, but a little more screen real-estate would be nice.