Right, I can definitely see that.
Although I think in order for a 12" formfactor to truly be great, a smaller fabrication process, such as 3nm is needed, to bring the efficiency to a level where there would be little compromise for the base level M2/M3 chip in that small of a chassis. I actually liked the keyboard, could have something to do with the fact that it never broke on me (fortunate, I guess). But I generally prefer shorter travel for keys, and hate mechanical keyboards, so your milage might vary. I wouldn't mind if it had the same MBA keyboard today though.
The webcam is horrendous. Although I only use it occasionally to do some zoom calls, it's not much of a deal breaker. If I do a proper zoom / stream session, I would be at my desk with a real standalone camera and a condenser mic sitting on an adjustable boom. Almost all camera / microphone on laptops and phones are far below what is acceptable for a proper call / stream.