The 1080p upgrade on the M2/M3 Air is noticeable but not a game-changer.
Yes, it’s better. The M1’s 720p camera is soft and grainy in anything but perfect light. The M2/M3’s 1080p is sharper and handles low light slightly better. But it’s still a laptop webcam — don’t expect iPhone quality.
Apple’s image processing does a lot of heavy lifting, but the physical sensor is still tiny. You’ll look less like a blurry potato on Zoom calls, but you won’t look like a pro streamer either.
If you already have an M1 Air, this alone isn’t worth upgrading. If you’re buying new, the better camera is a nice bonus, but buy the M2/M3 for the performance and screen, not the webcam. A cheap external light will do more for your video quality than either of these cameras.