Framework is definitely premium-priced, but I don't think most people are cross-shopping the Framework 12 (a 12" convertible tablet) and the Thinkpad E14 (a 14" dedicated laptop).

so it's competing with Framework 14?

No such model exists. The Framework 13 comes closest, but a 13" screen and a premium shell would compete more directly with the Thinkpad X13.

Direct price comparisons get tricky because different buyers care about different details. I really like the Thinkpad's Trackpoint, for example, but I also like the Framework's 3:2 aspect ratio. I'd have a hard time choosing.

Ymmv but the 16:10 screen on the framework punches a bit above its weight compared to 16:9 screens with a similar diagonal measurement

The Framework 13 has an aspect ratio of 3:2, not 16:10. The Thinkpad X13 has an aspect ratio of 16:10.