Well overall if you sum up what even a basic m1 mb air packs, be it the panel, quality peripherals and soc itself its rather reasonable and within reach for almost anyone contemplating of buying a new computer. When you factor in that they were the first ones with an actual capable desktop arm offer I'd even say its cheap.
At least this is how I felt 2 years ago back when I bought it and more or less even to this day. I'm wondering how is the market as of now, two years later, and how the $1k arm laptops coming out today compare.
There is literally no other laptop on the market that would be anywhere close to an M1 air in terms of performance-battery life combo. And it is definitely not even on the upper end in price for that, tiny windows laptops are ridiculously expensive!
So, are they really expensive?
Apple is one of the few companies smart enough to deliberately do this. It is both a testament to ability to do brilliant things, and akin to being trapped in a room with a lion that has twice your SAT score. The "golden handcuffs", as they say.