I don't think it'll dilute the brand at all. The neo still feels like a premium product. Other laptop OEMs are now starting to come out with their competitors, and they are putting 1080p crap display panels on them like they always do. A $599 laptop with a 1080p screen from Dell is going to feel like a cheap piece of junk next to a Neo.

I agree with your comment generally, but note that Dell's $699 competitor they announced this week has has a slightly larger screen than the Neo with similar resolution and brightness but better color coverage.