If you get a bit creative you can definitely hide it well enough that "removing the air tag" is no longer the weak point in the plan.
I've got a Pelican 1510 that has a suitcase-style pop up handle and wheels on it. It's just screwed on there. I took the screws out, took it off, filed the sides of the air tag down slightly so I could fit it in a little cranny and then held it in place with some black tape so it's hard to see. Even if you use an iPhone to try and find it, it looks like it's hidden in the liner or something. But it takes tools and about 15 minutes to get it out _even if you know exactly where it is_ and how to get to it.
For one of my backpacks it actually came with an "air tag pocket" which is just a spot on an inside seam where there's a small gap you can slide the air tag in and it's held securely. I know it's there and it still takes me a while to find the thing to take it out.
For my other, I pretty much just get by on it having a bazillion little pockets and pouches and lot of random stuff in it. The air tag's nestled in there beside the flashlight that the TSA spent almost a half hour looking for after x-raying my bag repeatedly before finally telling me what they were looking for and me pulling it out for them.
I'm relatively certain I'd recover my bag with the air tag still in it. Whether or not the _valuables_ are still there is a different story.