I won't wax lyrical about a sky blue M5 MacBook Air because I'm capable of reading the room on a social network that disproportionately favours Linux and libre software, but the "new shiny" phase has passed and I still think that was a good purchase. 🙂
The main trade-off for home users is probably any gaming outside of Apple Arcade. There is no Steam Proton, and Apple frequently deprecates technologies that its own legacy game ports rely on, so to play old Windows games you pretty much have to buy licenses for Parallels Desktop & Windows 11. Although UTM does look like it's becoming a promising libre alternative.
I also suspect that people who want to get into Xcode development, perform demanding power user tasks, or work their day jobs on this thing would feel frustrated that it's not a more powerful & better ventilated MacBook Pro. Those are much more expensive though and frankly more than I need for casual web browsing, updating personal budget spreadsheets, and coding up a blog.