Does it matter if the main difference is the OS? Chromebooks are way worse spec wise, and they’re still “phones with big screens” and a different OS. If someone made a windows laptop that was actually good without compromises in an ARM SoC, I’m sure it’d sell well too. The Qualcomm ones seem to have too many compromises today with the OS/driver layer unfortunately.
That last part is the stumbling block for sure - the Microsoft Surface Laptops are nice machines but damn if the driver thing doesn't continually piss me off.
https://www.microsoft.com/en-us/surface/devices/surface-lapt... but at $900, and the Neo literally just being a Mac and doing everything any other Mac does (except some hardware related limitations like driving a 6k monitor, but doing 4k is "enough for most") means you save $300 and don't run into annoyances like "can't install my printer driver".
The NEO is a masterclass in how integrated these systems actually are.