Compromised for size
As I've said, the Air is no netbook, but I can't ignore the deficiencies it has as a result of the pruning Apple has done.
Netbooks tend to be tubby, but 11.6in sub-notebooks are able to be slimmer because, being slightly larger, they have a larger footprint so designers are able to spread components out rather than stack them. The Air is still way thinner and lighter than any of the 11.6in Windows 7 machines I looked at a month or so back - it performs better too - but they, like the Eee PC, have more features.

The keyboard is full size
The Eee 1215PEM happens to have Gigabit Ethernet, but most netbooks and 11.6-inchers only go up to 100Mb/s, but the Air doesn't even have that. Apple has added a second USB 2.0 port and there's still an external monitor connector - mini DisplayPort - but it couldn't squeeze in the SD card slot that so many rivals and even the 13.3in Air manage to include.
The big question, of course, is whether all that matters. Personally, I've never used a laptop monitor port and never will, and would happily trade it for Ethernet. Other folk do, just as others don't care about a LAN connection because they only have WLANs at home and at work.
Likewise, the fact you can't upgrade the memory is annoying, but given the OS and the realistic lifespan of the hardware - upgrade in 3-4 years' time - it's not a deal breaker. Geeks like us tend up ramp up Ram, but most folk don't. And OS X will run smoothly in 2GB even minus the 256MB or so the GPU grabs for video.

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COMMENTS
Re: I disagree on price
Small point: the Air's 11.6in screen isn't 'far superior' to the displays found in other 11.6in notebooks.
Like all of these, it has the same resolution - 1366 x 768 - and while some are a little better than others - the Air's is one of the better ones - there's actually not much to choose between them.
I say this having reviewed the Air *and* ten 11.6in notebooks recently.
I have one
(Redacted from a post somewhere else)
I purchased one of these almost the moment they were relased (1.4 Duo, 2GB, 128GB)
I have to carry my computer with me at all times, and my unwillingness to lug much more than a Kg lead me immediately to a Netbook - I have been running a Hackintosh (MSI Wind) for a few years. After the first MacAir was released a colleague acquired one. My analysis was “almost there”. After 3 seconds with the new model, I simply took one home. Game over.
1: Metal computers are really a better option for people who carry them at all times and travel constantly. This machine is exactly the correct size to fit in my backpack. It is lightweight and durable. No additional protection required. Check…
2: The machine is sufficiently powerful for any realistic task I am likely to perform, as ripping DVDs and HD video post-production are not in my list of daily activities. Check…
3: Relatively speaking, the cost is in the same ballpark as similarly configured sub-notebook/netbook class machines. Check…
4: Like most Apple products, the MacAir simply is a masterpiece of design and engineering. For the epicurean, this is the machine to own. There really is no competitor. Check…
5: I happen to use a large flat screen monitor when stationary. I can live without an ethernet port. Check ...
6: OSX runs fine in 2GB (as do most Unix implementations). 4GB would have been overkill. Check ...
7: The single MS-Windows program that I absolutely must have for my job, that has no Mac equivalent, runs just fine in Parallels. I wish I could live without it and parallels, but until I retire I am stuck with it.
Missing: I might have liked and SD slot, but I have a USB SD that I can use on the very few occasions I need it. Ditto ethernet.
Having used the machine constantly for several weeks now, I can say that it has met my expectations 100%.
Since the speed of OSX does not degrade exponentially with every version in the same manner as Windoze (it's the opposite I think), I expect this machine to be a workhorse for many years to come, so the additional cost with sublime portability & ruggedness and acceptable battery life are a good balance.
Finally ... Why do reviewers obsess about the bandwidth rating of various networking connector options? They are for all practical purposes irrelevant for a single machine connected to any network.
Dweeb
Ethernet speeds
"Finally ... Why do reviewers obsess about the bandwidth rating of various networking connector options? They are for all practical purposes irrelevant for a single machine connected to any network."
Because they matter if you want to move large files around. And large can mean a lot smaller than a DVD. 100Mbit/sec ethernet is slower than modern hard disks. And you can't get 1Gbit/sec out of a USB 2 port. Would have been nice if it had had one USB3 port.

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