You are only looking at one aspect of performance and saying "this is the competing product". Windows on ARM runs programs way slower than x64, so no, it's not playing in the same market. It's playing in the same market as tablets, not laptops. If battery life is the aspect of performance that's important to you, ARM is an appropriate comparison. If computational performance is important, it's a poor comparison.
No, I'm looking at three. That's why I brought up the power taps and the chiropractic adjustments. The Elite Folio uses a related processor technology and gets the other two axes fairly close.
You make a good argument, though, that technology similarity may not be as important as the fact that Windows for ARM isn't as well supported as it is on x86. Would the result be similar if we ignore "related processor technology"? I don't know, but you're gonna make me find out.
I don't think people (who are serious) compare Macs to a plastic fantastic machine like a Celeron powered HP Stream, and then declare "Macs are overpriced!".
That happens all the time. It's literally why people buy $500 Windows laptops. Some of them even have problems that can be solved on a $500 laptop just fine (more and more as technology marches on!), and they're even happy doing it.
You would compare to something in the same category, like the HP Elitebook. There are Elitebooks in ultrabook form factors, so in a similar weight and size class to a MBP. And they have AMD Ryzen APUs, so can be just as fast, or faster. Battery life will be less. "Constantly looking for power taps" is a huge exaggeration though, these types of ultrabook machines can easily achieve 8 hours comfortably, which is a full work day.
OK, let's pull on that thread. Let's play the x86 version of this game, and use your example: The Elitebooks are actually Mobile Ryzen parts, not AMD's APUs-- the 5700GE APU would be faster and more comparable with an M1 (not Pro, not Max) in performance, but they're 35-watt parts, so they don't go in small, light, battery efficient laptops.
The Ryzen 6000 parts look like they'll beat a base M1 in every category once they're shipping. They're not, though, so let's compare a Ryzen 5850U-powered EliteBook 835 (the most recent one HP's shipped). And you said MacBook Pro, so we'll compare with the 13" version that can have a base M1 under the hood and all the cooling it needs to keep the performance steady.
- Both have 13" screens.
- The MacBook Pro has better CPU performance-- geekbench shows single core scores around 1700 versus 1400, and multicore around 7600 vs 6700. If you're willing to run Linux on the HP, its multicore performance starts to hang with the Mac, and in a couple cases, even beats it.
- The MacBook Pro is slightly heavier, 3.0 lbs versus 2.8 lbs.
- The Elitebook 835 G8 actually starts with 16 GB of memory and 512GB of storage, compared with the MacBook Pro's 16GB and 256GB. That's also a win for the Elitebook! (Sort of. The Elitebook also ends at 16GB of memory and 512GB of storage...)
- I can't find anywhere where the same tests are done on both machines, but the MBP can get up to 20 hours of "video playback" battery life and HP claims up to 24 hours of battery life (no description of what you're doing). So OK, that's also a win for the Elitebook.
- The 13" screen on the Elitebook is 1080p, not Retina. Advantage to Apple here.
(As an aside at this point: you noted that I made a huge exaggeration about constantly looking for power taps. These are marketing numbers, so they need to be taken with a grain of salt, but they suggest I wasn't exaggerating-- I was flat wrong. My apologies.)
Anyhow, we can spend a few bucks and bump the Apple SSD size up to the Elitebook's levels. The Apple is a bit faster, but its main advantage is that it has a significantly better screen. The HP brings better battery life and weight, but its significant advantage is it has no goddamn touchbar. They really are, as you suggest, reasonably closely matched.
So let's look at pricing: The Elitebook costs $2059. The Macbook Pro, even after paying for Apple's ridiculously priced SSD upgrades to match the Elitebook, is $1399.
What's this? Even if we play by your rules, the Mac is still cheaper? By over six hundred bucks?!
Might be worth it to get rid of the touchbar.