Price is far from “bit more expensive” when you factor in how much 16GB vs 16GB costs(as of this moment only super expensive 1TB/2TB iPP versions come with that much RAM) , plus exorbitant MK price, then factor in Apple pricing outside USA and lack of Apple buy-back in many countries and youve got yourself niche product that has much, much smaller market than 16GB Macbook Air.Why? Because the 12.9in iPad (with MacOS) is basically the same weight as the M1 Macbook Pro once you add the MK (and only slightly heavier than the MBA) and while a bit more expensive it offers a much better screen, an appealing aspect ratio, touch and pen support and can act as an iPad when detached. Plus you have a cellular option....
As for the number of ports, a hub solves the issue.
If this could not eat into the M1 Macbook sales I don't know what would
Not everyone cares for pencil/touch or new display tech. People who need tablets buy tablets, people who need laptops, they buy laptops.
Regardless if and when iPads will be able to run mac software, its still overpriced niche tablet, no matter my personal opinions about it(I would love to get one with 16GB, but not for close to 2.4k euros with MK/Brydge and Apple care). Its not device for the masses unlike MB Air.