Here's my perspective. I never understand how some people could look at the code you pasted and think that's just as good. But different people's brains process information differently. Your example has a lot of punctuation that's very difficult for me to parse quickly. I don't see the DOM structure that's being created unless I manually pick the syntax apart in my mind, but understanding the DOM structure at a glance is far more important to me than whether I need a compiler. For the record, I'm neurodivergent. I hope that helps.
Yes I can understand it helps if it looks like DOM on first sight, I'm thinking more about the functional aspect where it can achieve the same thing without requiring a compiler and a new syntax (altho you can argue it's not new syntax just js + html)
It doesn't achieve the same thing, though. Functionally, for the computer, it's the same. But code has two audiences: the computer and the coder who has to read and write it. And from my perspective, the human is more important than the computer. And JSX is more than a convenience at first glance. You read a lot more code than you write. If all of my code was written like this, it would add significant cognitive load, make the code more difficult to reason about and slow me down.