I’m not sure what market you are in, but this thing will absolutely upend the low end market in North America. This is a MacBook which handily competes with used/refurbished M1 airs for performance, but sells for less. Hell, it sells for less than an iPhone.

They have managed to keep the build quality without really sacrificing anything you would expect on an entry level computer.

My experience with the low end of laptops is that people can’t even tell you what OS they have (chrome or windows). People are going to see this and think that apple makes good phones, good tablets, and now good computers for affordable prices. The existence of the c model iPhones never “cheapened” the high end models. The existence of the iPad does not cheapen the iPad Pro. All the reviews and media basically are people wondering how they managed to create such a high quality product at this price point.

Apple made a significant number of tradeoffs to reach $500, but for a budget user, they're reasonable tradeoffs.