The 3D performance of both (vega 7 and iris Xe) should be pretty comparable though I haven't explicitly compared them
Video decoding/encoding performance and software support (especially Quick sync) should be better for the Xe counterpart (also supporting AV1 decoding)
About it being more expensive compared to HP counterpart, it depends on how much premium you are willing to pay for a better display (100% sRGB, 400 nits, 2160*1440(50% higher pixel count than 1080p))
Though it has non upgradable ram which is a bummer