That 2017 MacBook Air was the last one to have
- A non-Retina screen.
- An old-style Thunderbolt 2 port, with a Mini DisplayPort connector. Because Thunderbolt 3 – 5 live on the USB-C connector, and Thunderbolt 4 – 5 accessories are not backwards-compatible with Thunderbolt 2 hosts, your TB2 port is now useful mainly for its ability to double as a Mini DisplayPort.
- MagSafe 2.
That MacBook Air only came with 8 GB of RAM – but in the old days, macOS and applications did not make quite as many demands on RAM.
You can think of the MacBook Neo as being a mostly new and improved successor to the 12" Retina MacBook from 2017. (I say "mostly' because it is heavier, lacks a backlit keyboard, and cannot be ordered with 16 GB of RAM.)
The M4 and M5 MacBook Airs can/could be ordered with up to 32 GB of RAM. They have two full-featured USB-C ports with USB 3.1 Gen 2, USB4 40 Gbps, DisplayPort, Thunderbolt 4, and charging support. They have MagSafe 3. They can drive two monitors, including very-high-resolution 5K/6K ones, whereas the Neo is limited to one external monitor with a maximum resolution of 4K.
Neither the Neo, nor recent Airs, have a built-in SDXC card slot like the one on your 2017 MacBook Air, but you can get small portable external readers.