If the M2 Air supported two displays, I’d have no reason whatsoever to buy the expensive MacBook Pro. The M1/M2 Air is already so ridiculously overpowered for my needs. Which is probably why the Air doesn’t support two displays. Sigh.
I recall reading at least with the M1 that it's actually a physical hardware limitation with the architecture inherited from the fact that the base M1 is pretty close to the A15 which never needed to pump out to more displays.
[1] https://www.amazon.com/LG-49WL95C-W-49-Inch-Curved-Ultrawide...