Comparing the 13" with and without the TouchBar from https://www.apple.com/macbook-pro/specs/, the price difference between the $1499 model and the $1999 model covers: TouchBar; faster CPU; an extra 256GB of SSD; slightly better GPU; two more USB-C/TB3 ports; an extra microphone.
This is what I meant, TouchBar + a pack of the minor improvements which should not cost +$500. Also take into the account that seems there is no option to get top hardware, but with an usual fn keys.
It's better to get HP x360 for $1300 with i7-7500U / 512 SSD / 16GB Ram (which in addition has a touch screen and it's convertible) than a slightly worse Macbook for $2000.
