It is a flaw that can be overcome by mapping escape to caps, which everyone does anyway, or by using ^[ which is more conveniently placed anyway. That doesn't seem so immense.

I solved this by having large hands. I usually also use function keys which seems to be difficult as well with such a layout. The arrow keys could also induce nightmares for me. Especially up/down being smaller than left/right.

Is the laptop actually physically different than the regular XPS 13 ?

I seem to remember, a while ago, when this new model was introduced, that it looked exactly the same.

It's the xps13 plus. A different model with a hidden trackpad and a keyboard very reminiscent of Apple's butterfly keyboard together with touchbar