I have been using Time Machine for backups since day 1 when it shipped with OS X 10.5 Leopard. What I have learned about Time Machine over the years is this, at some point Time Machime WILL corrupt its data base meaning you will have to reformat the drive and start over. At some point the hard drive will fail, meaning you will need to start over with a new drive. Also I had to replace older drives because macOS High Sierra wouldn’t play nice anymore because of drivers, you guessed it, I had to start over. So, the conclusion I have come to with Time Machine is this, it is a great piece of software and I have recovered with it multiple times due to hardware issues or just migrating to a new machine. Just use it to keep current and recent versions of your current data environment. If you are looking to possibly keep everything you have ever done then maybe you should be looking for a more permanent solution for archiving backups. Joe Kissel and Glenn Fleishman have written books on this subject.
I have no idea if it’s a good idea or not, but I kinda want you to try it and report back!
I’ve helped clients use Migration Assistant with Time Machine backups, but I can’t recall the last time we simultaneously moved to a new operating system (which I assume you will be doing if you purchased an M1 MacBook Air).
Over the summer I helped a client go from El Capitan to Big Sur on an M1 iMac, but that ended up being a Mac-to-Mac migration. I’m not sure if that moves the same stuff as Time Machine-to-Mac migration. But the Mac-to-Mac migration went just fine.