Depends what you consider luxury feeling. It's so stripped down.
Aside from the slower CPU, half the ram, and half the SSD as the Air this is also what it's all missing compared to the Air:
TouchID, MagSafe, slightly bigger wider color (P3) screen, better 12MP CenterStage camera, 2 more speakers, 1 more mic, backlit keyboard, ambient light sensor, force-touch trackpad, WiFi 7, 2 Thunderbolt 4 ports, larger battery with longer runtime and faster charging.
Yes you can get TouchID with the 512GB upgrade for more money on the Neo.
It is still miles ahead of plastic garbage other vendors sell.
You are comparing it to other Apple laptops but you should be comparing with its competition at a $600 price point. The aluminum enclosure, touchpad, battery life, display, and performance are all best in class (or near enough) at this price point.