I think its a matter of the segment of the market that you want to get. In most cases, its less profitable for Chuwi (and arguably, Eve) to go head-to-head; so Chuwi chose to target the people who prefer cheaper device with lesser specs, and I think (so far) they kind of succeeded in filling the gap that the V left. I wouldnt be surprised if the Chuwi is priced somewhere between $300 to $500.
Of course Apollo Lake is going to be slower than Core M, because it is meant to be. But remember, not a lot of people need to do 3D CAD or play Civilization V on their tablet. Some just needs it for Office, taking handwritten notes, annotating PDF, etc., for which the Apollo Lake is sufficient.
This actually rises an important point, because normally manufacturers dont match Atom-class CPU with such high resolution screen or higher than 4 GB RAM. Heck, the vast majority of Core m3 devices dont even have that.