The M2 air has excellent value. The 13 XPS with comparable display/CPU and much slower GPU starts at $1599 for 8GB/512GB version. It’s same price if you bump it to 16GB, but the Air will still have better CPU/GPU and much battery life. If you want to configure the Dell with a CPU that’s a bit closer to M2, you’d have to pay $150 more. And you’d still have a GPU that’s half the speed.
And Dell XPS Olus is probably the strongest competitor. Other vendors are often even worse. I‘ve seen the mention of HP envy 13” for under $1000. That specific model uses now obsolete CPU, has poor build quality, significantly worse display and poor battery life. Lenovo Thinkpad X13 with Alder Lake starts at a whopping $2200 for a 16GB/512GB config - the Air is $500 cheaper, faster, has two to three times longer battery and much better display.
Now, it’s still the case of course that you can get an okish computer for less. Apple doesn’t do budget computers. And frankly, if you are looking at a budget, but still reasonably quality machine, the M1 Air will blow any competition out of the water for comparable price.