This is hardly an accurate conclusion. To start with, the screen on the 13" has 4M pixels (2560x1600). The screen on the 14" has 6M pixels (3024x1964). Technically speaking you are buying 50% more screen. The new screen is more dense, but the screen itself is pixels and you are getting 2M more (50% more) pixels. In addition to the actual better quality LED design which is the "Liquid Retina XDR". The new screen is also able to deliver 1000 nits of sustained brightness, with 1600 nits of peak brightness. That is compared to the 500 nits offered on the cheaper model. So again this is double the brightness (even more than that considering peaks). If that weren't enough, the 14" comes with adaptive refresh up to 120Hz. Again, this is double the 60Hz of the 13".
So that's a hell of a lot more than just 1" of screen.
Furthermore, you are comparing the base model of the MacBook Pro 14" to the base model 13", which aren't comparable. The 14" base model comes with 16Gb of RAM and a 512Gb SSD. If you compare the equivalently spec'd 13" model with the 16Gb RAM and 512Gb SSD then you are looking at $1,699.
So for equally spec'd machines, it is $1,699 for the 13" and $1,999 for the 14". This means the price difference is a mere $300.
But even that isn't comparable. Because the $14" comes with the M1 Pro chip compared to the M1. I won't rehash that, but its a significant upgrade in CPU.
So you aren't paying $800 for 1" of extra screen. You are only paying $300 for the difference which offers a major screen upgrade, in addition to port upgrades, keyboard upgrades, and a major CPU upgrade.