I use the Mac M1 and wouldn't suggest it for linux unless all the functionality you need is explicitly supported. Most stuff does work for me as a java dev. However, Asahi doesn't support docking to a monitor which prevents me from using it solely as a linux machine.
Yes, Asahi is working to get external monitors working. Currently external monitors work only at Mac Mini M1 where it's physically connected to DisplayPort type interface where already exists drivers. At M1/M2 laptops external displays are connected to Thunderbolt (that USB-C connector) so it requires developing more complex drivers.