From what I can tell, they've used this way in the sense of, "like this." How would you say it in the sense of, in this direction?
My hunch tells me 이쪽에 있어요 because you're saying this thing is (exists) (in) this direction, right?
This is sentence can be interpreted as "this thing is like this", or "this thing is in this direction" (the latter is more common in my experience).
So why is "이것은 이쪽으로 있어요" not correct?
because that was for another lesson. this sentence is supposed to be like "this item is like this" as in this item is this way in nature or "it's not like that"
Directions were in the demonstrative section.
The sentence "This thing is similar to this" or "like this" would be clearer than "This thing is this way".
"This way" is more likely to be related to an action than an object. For example "Do this thing this way" or "Go this way".
What's the problem with my answer: 이 물건이 이래요?
In the "그 빵이 그래요" example -- which is translated to "that bread is like this" -- makes me feel like 이것은 그래요 would be a similar statement to 이것은 이래요. Not identical translations, just similar meanings. Is it incorrect for me to think that??