The M1 iPad Air is actually $599 for the entry-level 64 GB, which nowadays isn’t that much storage. If you go for the 256 GB (there’s no 128 GB, for profit-maximization reasons) and add the Pencil plus maybe the missing charger, then you’re already at over $900.
One thing I've really appreciated on flights is the addition of streaming videos to your own device. If it saves fuel and maintenance costs, I'm perfectly fine with them ripping all the personal TVs out of the plane as long as they can keep a selection of movies available in case I forget to download my own and don't feel like reading.