For your first question:
You're correct that 16GB is already a very capable amount of memory for the vast majority of everyday tasks — browsing, productivity, light photo or video editing, and even moderate app development or virtual machines. The unified memory architecture on Apple Silicon means 16GB on an M4 performs more efficiently than 16GB ever did on Intel.
With that said, 24GB can be a future-proofing move. If you foresee leaning into AI tools (like running local LLMs, heavy image generation models, or advanced data sets), or doing serious multitasking — say, working with Lightroom + Final Cut + Xcode + multiple Chrome tabs + virtualization — then that extra headroom can keep you from hitting swap. It also helps if you routinely use apps like Logic Pro or Final Cut Pro with large libraries and plugins. Otherwise, if your use case is similar to what you're doing now and you're not chasing the AI or media production edge, 16GB is absolutely fine for several years ahead.
For your second question:
If your peripheral needs are basic — a few USB-A devices, maybe Ethernet and HDMI — a USB-C hub is more than enough and keeps things simple and portable. Something like an Anker or Satechi hub with USB-A, Ethernet, HDMI, and pass-through power should do.
However, if you plan to treat your new Mac more like a desktop — docked at a desk with a display, wired internet, external drives, audio gear, etc. — then a Thunderbolt dock is a better long-term investment. It gives you more stable performance (especially with displays and storage), cleaner cable management, and power delivery. OWC, CalDigit, and Plugable all make excellent options.
For your third question:
No — at least not easily or natively. Apple dropped Target Display Mode support after the 2014 iMacs, and your 2017 Intel iMac doesn't support it. There's no built-in way to use that iMac as an external display for a new MacBook Air.
That said, there are third-party software workarounds like Luna Display (hardware dongle + app), Duet Display, or Sidecar-style apps that can run on both machines and stream the display over Thunderbolt or Wi-Fi. But keep in mind that these are never quite as responsive or color-accurate as a true external monitor.
If you think you’ll want a second screen often, it might be worth investing in a dedicated external monitor — there are excellent USB-C monitors that are sharp, color-accurate, and affordable.