Yes, but Apple has traditionally found ways of packing things into slimmer packages than the Microsoft alternatives - see the original MacBook Airs. Even if the end result was essentially a laptop without a screen - a keyboard and a trackpad and USB-C ports all built-in - it would reduce the clutter.Looking at the specs for the HP, it won't be much better in terms of performance than the $300-$400 laptops offered on Black Friday. It wouldn't be useful for anything but the most basic tasks, and would likely throttle when doing even basic photo or video editing due to the design and limited thermal profile.
Besides, aren't there rumours of a new MacBook running off an iPhone chip? It likely "wouldn't be useful for anything but the most basic tasks, and would likely throttle when doing even basic photo or video editing due to the design"?
So Apple is prepared to go down that road anyway.