I completely understand that as a cheap one, it has to be worse than macbook air in some aspect to make the product line work. However I'm genuinely curious why it's thicker and no lighter than the Macbook Air, while at the same time has shorter battery life, less ports, no keyboard light, and a smaller chip? Do they put dead weight inside it or something?

Product Positioning...

Apple is doing everything they can to ensure it doesn't appear as a premium product.

A decade ago, they had the 12" MacBook (not Air, just "MacBook") it it felt super premium because it was lighter and smaller than any Air/Pro ... and used by executives (because it targeted that use case).

By having this product:

- called "Neo"

- thicker

- as heavy

- limiting RAM

And marketing this towards kids and lower grades, they are avoiding any mistaking this product as premium.