The shine of the Neo just rubbed off somewhat.

No kidding, I was considering one to replace my 8g air m1. Which was questionable to begin with performance wise, but it's so worn after all these years. Certainly won't do it now.

The $599 XPS13 is a better value, and it can run Linux unlike the Neo.

Until they raise the price on that too. Dell has explicitly stated it's a "limited time" price, so don't be shocked if it becomes the $699 XPS13 almost immediately.

Yes and no. Relatively speaking, MacBook Neo is still quite cheap, especially since iPad and MacBook Air received even greater price increases. And Apple's competitors are surely experiencing the same component shortages.