I think a big reason for angst is because if you had an iPad with an M1 processor all those people wanted it to run full MacOS and I think a big reason that was given was that an iPhone SOC just wasn't powerful enough and also before M series chips Intel and a series were very different and a series was seen as inferior in performance and gpu. Obviously that thinking is very outdated but I think persistent in the Apple community where people hand onto hardware for a long time.
Now an iPhone SOC can best Intel and AMD processors or come very close and then M series just adds more distance.
So part of it is outdated thinking and part of it is that for a while people were told there were limits to certain SOC's that in reality aren't there anymore.
You also have a segment of people who either want the Neo to be an Air with an iPhone SOC for $599 or those who think that no matter how low the cost the components are garbage and below Apple and of course below them.
It is odd to see some reactions but I think in the first few weeks opinions tend to be polarizing and then reality sets in and people become more realistic. I know I fell into a more extreme reaction at first. On the one hand I felt a used or older gen base air is a better value and sort of dismissed the Neo, specially without a backlit keyboard which I really hope they change in a later revision. I also like many thought the 8gb ram limit was a bit harsh when 16gb is the standard these days. However when you consider the Edu discount and the build quality and component quality in class the Neo stands out as a great cheap Mac.
As a consumer I have longed for a budget oriented Mac laptop or MacBook for many years. I do wish some things were different like using an older m chip instead with 16gb ram options available. Honestly some of us are just frugal people and don't need a lot of bells and whistles. If I could get at least 16gb of ram as an option and if they are using a phone SOC the best and latest phone SOC not a gen behind. Like if the base model had 8gb and the Touch ID model with 512gb also had 16 or even 12gb ram. So say Neo 2 has the latest iPhone SOC and at least 12gb ram and Touch ID model with 512gb also had backlit keys then it would be a buy for me. Also a big plus is NO NOTCH. I know the bar at the top effectively removes it but I just like having a regular screen. Think if they eventually release a 15" Neo.....
In any case whatever Apple does it expands and opens up the low end market to MacOS and that is great for everyone and once all the dust settles I think we will all be better for it. I love opening up the young education market to MacOS instead of ChromeOS!!! It is a much more useful skill to have working knowledge of MacOS vs ChromeOS for the kids future.