These days, the extra cost is (mostly) for the quality. (Some of it is also for some of the capabilities, which a given user may not need all of, but the selection is very limited.)
So much of the time, when people are comparing a Mac to a PC on price and complaining that the Mac is overpriced, they're comparing it to a PC whose build quality is very obviously inferior. For them, that may not matter, because they're fully price-focused, or because they're only planning on having it for 2-3 years anyway, or because they just don't believe that build quality matters...but it's still a real thing, and it does make a difference for many people.
The old Surface Book has 3000x2000 resolution which is 200%, but the Surface Laptops have 2256x1504 resolution, which is only 150%. As Steve Jobs said when he introduced iPhone 4, the only resolution that looks good after 100% is 200%. I have tested screens with 150% and 300% resolutions, and they all have display artifacts (such as horizontal 1-pixel horizontal lines appearing to have different widths).
Right now a entry level Macbook Air in NZ is ~1600, 1400 on special, and a Surface Laptop Go 2 is ~1400. Same size, same ram, same hdd, higher res on the air, touch screen on the surface, m1 on the air, intel x64 on the surface, basically same target market.
Only if you go with the absolute lowest specs. Which means you cannot upgrade them and will have to chuck that MacBook Air much sooner than any Windows laptop because it’s unable to keep up with you.
Maxing out the specs on any Apple hardware is practically required for maximizing usable lifespan, and unfortunately, represents a massive barrier to entry for a majority of people. Since these products are not upgradable after the fact (as most Windows systems are), you have to choose between a much shorter expected lifespan or a much more expensive product.
For example, I can easily put together a Windows machine for $3,000 that can do much the same things that a $2,000 Mac Mini can. But get the entry-level Mac Mini, and any Windows machine which matches that price is relevant for more than twice the time span thanks to its ability to be upgraded.
512GB seems to have been enough for me for the last ten years or so, if I need more storage than that, it goes on a different machine or cloud storage of some form. I haven't found it restrictive at all.
I had my 2013 MBP (i5/8/512) in active use until 2020 when lockdown hit and I stopped needing a laptop for a while. Now I'm on a M1/16/512 Air, and two years in I'm still very happy with it. Hopefully I'll get 7 years out of this one too.
I do have a 4 TB NAS at home, but that's backups and childhood photos, no daily-driving stuff. I don't consider myself a casual user.
("temp" like "stuff I occasionally need", not literally /var/tmp)
The base model m1 macbook air has 256GB of storage.
I can’t find any laptops in my country with the same screen resolution, brightness, weight, and trackpad combo as a base Macbook for a cheaper price.
My wife’s M1 Macbook Air feels faster than any laptop I’ve ever used, and outside of 3D rendering, even faster than my Ryzen 5900x desktop.
What extra up front cost? The Macbook Air costs $799 at BestBuy. Do you mean to say a similar quality Windows machine costs less?
Only Samsung makes computers that are comparable to the Macbook. This Samsung [2] arguably has a better screen but costs $1450. (There are cheaper Samsungs but they don't have 200% screen resolution.)
[1] https://www.bestbuy.com/site/macbook-air-13-3-laptop-apple-m...
[2] https://www.bestbuy.com/site/samsung-galaxy-book3-pro-14-3k-...