For smaller end mill bits like an 1/8” or 1/16” up cut or down cut bit… are people using an 1/8” shank with the adapter piece or paying extra for the 1/4” shank?
Does it matter? Is there a difference?
When I was using the trim router, I did, in fact, order and utilize the Amana router collet adapter to facilitate use of 1/8" tooling. It’s also highly advised not to do so because there’s no guarantees that the adapter will reliably hold and who knows what the runout is when essentially using a collet within a collet.
From personal experience, I found that, for drilling operations, the adapter was sufficient but, for using Dremel bits, it’s a no-go because the tooling was too flimsy to work in terms of doc / feed / speed / woc milling. In that, it might just be more advantageous to invest in tooling with 1/4" shanks that are specifically designed for use with the router in its stock state.
I use a 1/8" collet. They’re more secure than the adapters.
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I forgot about that. The Makita actually has support out there. I was using some weird 65mm obscure thing on discount from the local hardware store that had its own thing going.
It also no longer has functioning bearings. 
Elaire sells adapters for 1/16” bits,
You can buy 1/16" and smaller bits off of ebay for a lot cheaper than Amana ones. I think they are used for circuit boards but work well with hardwood. They usually come in 5 packs and have a 1/8" shank. I have a spindle with a collection of collets in common sizes.
I bought an Elaire 1/8 collet and have run a 1/32 bit (with a 1/8 shank obviously), and I am more than impressed with how true it spins on center. Their collets are quality.
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I think I’m going to buy the metric and imperial sets from them.