There's very little a Chromebook can't do compared to Windows or a Mac, except most everything I need to do. I'd also rather not have 2 devices just because one of them is a Chromebook.
This, exactly.
I purchased a $1000+ Chromebook a few years ago when it was a lot more rare in getting the C436 i5/512/16 variant. I've had the Linux container set up from day one, and a while back even swapped out the more limited default Debian container with a full fledged Ubuntu install as my default container. I also have a Windows gaming desktop, a Windows ultraportable 2 in 1 and two Zorin laptops I use for various projects, and a cheaper take everywhere Chromebook with an m3 processor and 8gbs of ram.
As useful as my C436 is, for serious non-cloud work I ALWAYS have to turn to one of the Windows or Linux machines. Specs and Ram don't really matter for certain use cases, the OS limits the hardware in ways that make the Chromebook usuable in certain scenarios. Chromebooks are awesome, and they do a lot, but they are not for serious local work yet.
The other thing not being considered is while there isn't much a Chromebook can't do that a PC or Mac can, there's NOTHING a Chromebook can do that a PC can't. My Windows 2 in 1 has the Linux and Android subsystems running, so I get full access to tools for both OSes. There isn't much available for Ubuntu that isn't available for PCs, so the use case for the Linux subsystem is pretty limited admittedly, but it serves me well when I don't want to switch machines or transfer files to do one task. I'm a unique consumer in that I have a bit of extra money to blow on machines for specific use cases or for funsies, but for the most part you just have to really prefer having a Chromebook to having a PC in order to justify paying $1000+ for a single machine you use as your only computer and daily driver. There is no real argument that Chromebooks at that price are a better value at all.
Additionally, comparing the price of Chromebooks to Surface machines is a bit disingenuous. OP mentioned the HP Dragonfly with a 12th gen i5 as a good buy at $1000. You can almost always find a Windows PC with same or better specs for hundreds less, in fact HP is selling a convertible with the same cpu and ram for $629 right now. That one has a worse display, but if your argument is Chromebooks ought to be able to compete as more than media consumption devices then that nice bright display is often a nice to have vs. productivity features. Additionally, you can upgrade the HP x360 to a better display, a i7, 16 gbs of RAM, 1TB of SSD storage, and still only come in at $989, 10 bucks cheaper than the worse specced Chromebook.
When my Chromebook's battery life completely gives out, which I'm guessing with happen sometime late this year or next I'll upgrade to another pricey, fancy Chromebook to replace it. But I won't pretend it's the best value for the money while I'm doing it.