Amazing update. I still wish the m1 air supported 2 external displays though, as I would still prefer the smaller form factor, lighter weight, fanless design, and cheaper price, as I don't need the pro power. Hopefully the refreshed air will get support for 2 external displays sooner rather than later as it is otherwise perfect.
DisplayLink hardware isn't known to be super stable - since it all runs through USB, things can get slow or laggy, and can sometimes be subjected to bandwidth limitations (at the port, the controller, etc).
DisplayLink also uses software encoding, I believe - theoretically this shouldn't be an issue for the CPUs in this machine (they can handle something like that pretty easily), but there is a noticeable performance difference versus connecting them directly via HDMI or via a TB3 <-> DisplayPort connector.
You're also reliant on DisplayLink's drivers, which haven't always been the best on macOS. I've heard that this was fixed more recently, but haven't tested.