As someone who drove both, I vehemently disagree. Stripped of logos, one is delightful, the other just nominally gets the job done.
The Mercedes has superior suspension that feels plush and smooth. Wonderful materials in the cabin that feel pleasant to the touch. The buttons press with a deep, satisfying click. The seats hug you like a soft cloud.
All of that isn’t nothing. It is difficult to achieve, and it is valuable.
All of that make the Mercedes better than a Corolla, albeit at a higher cost.