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As a person who has always preferred the UI of Android and Windows over anything Apple designs, I can honestly say that the RAM upgradeability is moot for most people in this budget range because of Apple's software and hardware integration/ecosystem. An iphone with 4gb of RAM is significantly more efficient than an Android phone running 12gb. I hate that their hardware is so good, because I really do hate their UI, but the M1 is an engineering marvel. I'll probably wait for the M2, but my days fighting Apple fans are waning.
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Upgradability is more important for most people in this budget range, because few years down the road when the machine starting to feel sluggish due to new macOS version, etc; the easiest & cheapest way to get instant relief is to add more memory if the hardware allows it. The last iteration of Intel Mac Mini still has 2 SODIMM slots.
Reviews so far indicate simply incredible performance from the M1 chips, and indicate that application switching (ie multitasking with multiple Chrome tabs, etc) and other typical slowdowns on Intel chips don't seem to slow this down. In other words, the use case for 16GB may still exist, but running out of RAM / paging to the SSD isn't *near* the problem that it is with the Intel chips. As people have more time to try this design more details will come out on this. However, people are comparing performance to a (laptop) i9 CPU, which is outstanding..
Also if you look at the phone market, people are perfectly OK buying a $800+ new phone with more RAM better processor etc once every few years. They're clearly trying to replicate that and from business standpoint it makes perfect sense.
You lose some benefits buying with credit card including additional warranty