Well, the Varg has KYB suspensions well known for their performance; from what I can see in the specifications and pictures, the Hightail has:
• Non split triple clamps vs split in the Varg.
• ø43 mm fork vs 48: it means that probably the fork will flex more, binding the bushings more and therefore increasing friction. A 125 MX bike will have the ø48, typically, despite being lighter.
• 260 mm of travel vs 310 in the fork; I guess that the previous point and a 21" in a smaller bike prevents to have more travel.
• 285 mm of travel in the rear vs 310: similar considerations may apply.
Besides, the weight is stated to be lower than 100 kg, which sounds like a provisional specification which may turn out to be more disappointing.
Another thing to consider is that, as far as I've understood, a lot of KTM parts fit the Varg; what fits this other bike is still unknown.
And of course we don't know about reliability, customer support, et cetera.
I actually like it; I just would be careful stating that it's so all right that its price is similar to the price of a Varg.
You and I are thinking through these comparisons very similarly, but just come at if from different use cases. You more MX and me more trail.
In the particular post you quoted, I was comparing Surron Ultra and the Dust and the cost of upgrading Ultra parts to be on par with the Dust parts and if the Dust being $3,500 more than an Ultra was worth it based on the components of the two, which I opine it is. The stock Ultra components are lacking, but Dust is using much better quality parts. You are right to compare to Varg since all three of those land in about the same price point. No doubt the Varg had "fullsize everything", including fork diameter, travel, and weight, but for certain use cases or riders, those may not be beneficial or of value. Kind of like the 80hp Varg was of no value to me over a 60hp. I would never use it except for one or two "so that is what if feels like" rips. Ha. If the price difference between 60hp and 80hp was $100, I would have kept $100 in my pocket and still got 60hp. Where others might gladly pay more than the $1,000 going rate.
In my opinion, between the Varg and Dust, it really comes down to personal use case and rider preference. For example, if a person only does motocross, then I don't think Dust is the right bike unless you are small/light or just want to recreationally do it. I think the Dust is targeted at small/tight/gnarly single track recreational riding or hard enduro type riding where it's smaller size and weight have their advantages, though one can certainly use the Dust for anything "dirtbiky" including track riding. Some riders (size/weight/style) or terrain/uses cases just don't benefit from a bike the size of a Stark or with larger components.
It would kind of be like if a person was buying a new pickup, both the same price, but one the dealership had put expensive, high quality 6" suspension lift on it. Both had expensive aftermarket shock package. There may be some extra, costlier components on the lifted truck, but if I can't fit it in my garage or never drive trails/offroad and only drive asphalt or I only use the truck to tow heavy, those components are of no value to my use case. Then the next buyer might value them because where they drive, the extra height/width/clearance is an advantage. Similarly, larger or costlier components of a Varg over a Dust only have value for certain buyers use cases. (That was the best I could come up with. Ha.)
100% agree on Varg having the advantage of using parts that are interchangeable with existing manufacturers. That was such a smart move. So many KTM and Yamaha components (and aftermarket compatible components) out there available for use just baked into that choice. One-off stuff is more expensive to produce, harder to source and a bit risky if the company doesn't survive. No reason for suspension, wheels, brakes and similar components to be proprietary. Good on Stark for going that route.
Will add that the removable battery is nice, but not because I ride where I could do a battery swap. It nice from a winter storage and charging-outside-of-the-bike perspective. Those that ride in OHV area, tracks or lap races will surely like that feature compared to the Varg.