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There's plenty of examples in testing of thermal throttling of both the M1 MBA and MBP (non redesign). LTT did a few really good videos on it.
It's not a design flaw or a major problem, it's just physics. The cooling solutions in both those machines aren't as proficient as those in the re-designed chassis.
I would go with the 14” (I have the 16).
Better screen & MagSafe alone would win but the new design also has much better cooling so you’ll like see less throttling under load so comparable performance to the M2.