Why is the HDD and RAM integrated on the motherboard?

There are compromises to be made for the sake of a low price.  If this is one of the low-end 3000 series systems with an embedded 32G eMMC drive, it was designed for a single purpose:  to be inexpensive.  Every cost savings that exist was built into the design.

As is the case with every other sub-$500 notebook it's a throwaway when something fails.

There's a reason why these systems cost less up front than a 3-year warranty on a true notebook system - they're essentially disposable appliances, not true notebooks.

Oh I see so Dell thinks people on low income don't matter since which is probably what most people who buy these types of system are on, no ? The money this company has and the cost to make these units non integrated is next to nothing and we ain't talking about making them great, all is need is non integrated hard drive. Even these eMMC drive why must they be integrated? They could of left them removable, no? I guess I'm going to need to learn how to solder.

The only way to sell these for under $200 as they do is to build them the way they're built.  Good luck with the soldering -- by the time you buy the hardware necessary, it'll cost several times what the notebook did.

Here another thing which isn't needed is the recovery partition . Since these units are windows 10 digital entitlement license, why do we need to have the recovery partition loaded with all of Dell bloat software.? The more simpler, better, cleaner would be to use a usb flash stick and have windows 10 on it, then boot off it and install windows .... much cleaner without all the bloat load of software  . All that is needed are the drivers which is easy to get...

Because as is the case with other devices, ad-supported features reduce the cost - in other words, part of the reason the system is so cheap is because the software publishers paid Dell to preload their software.

Amazon does something similar with reduce-cost kindles -- you get ads in exchange for a lower price.

It's yet another compromise you make when you buy the cheapest system on the market.

That's true enough, though since these chips ( hard drives / Rams ) are so cheap you would think why not give 2 eMMC drives both could be the same size, have an extra for whatever reasons . In any case it does serve what I'm using mine for . You can play hd movies, surf the net, battery life seem to be good . If they gave these units 2 years warranty free with 2 eMMC drives, then I can see their worth .

Would you be willing to pay another $150 for that -- because that's about what it would cost.

It shouldn't be only how much money one makes but rather how to please your consumers and make money at the same time

No.... I'm saying at the cost they are now . I doubt very much if these drives cost more than a buck for Dell

The warranty would add that much.

not really because you can't tell how many would be using the warranty and again the parts for these are next to nothing ... It would be the labor that would cost the most, but they probably have cheap labor some where in China ...